Epic Games, developer of ‘Fortnite,’ cuts 1,000 employees in mass layoffs

Weeks after increasing in-game currency costs due to financial pressures, Epic Games, the developer of Fortnite, has laid off over 1,000 employees. CEO Tim Sweeney attributed the layoffs to financial strains on the game. In an open letter, Sweeney mentioned that Fortnite’s engagement downturn, beginning in 2025, has led to spending exceeding revenue, necessitating cost-cutting measures. Despite remaining one of the world’s successful games, Fortnite’s player count has decreased, impacting finances. Recent layoffs are unrelated to AI, with affected employees receiving severance packages. The gaming industry continues to face widespread layoffs, with major companies like Ubisoft and Electronic Arts also making cuts.