Epic Games, the developer behind *Fortnite*, is facing another round of layoffs. CEO Tim Sweeney announced the company is cutting over 1,000 jobs, attributing these cuts to a decline in *Fortnite* engagement starting last year. Sweeney noted that this layoff, along with over $500 million identified in cost savings through contracting, marketing, and closing some open positions, aims to stabilize the company.
This decision follows the layoff of more than 800 people in 2023. Sweeney pointed out several challenges affecting the live-service game industry, such as increased competition and dwindling consumer spending, while acknowledging specific issues within *Fortnite*. Despite the game’s success, Sweeney emphasized difficulties in delivering consistent quality and optimizing the game for mobile platforms.
Sweeney clarified the layoffs aren’t related to AI initiatives. Affected employees will receive a severance package, including four months’ salary and six months of healthcare for US-based workers.
Earlier this month, Epic increased the price of V-bucks, *Fortnite*’s in-game currency, citing increased operational costs. As part of recent changes, Epic will discontinue *Fortnite* game modes like *Rocket Racing*, *Ballistic*, and the *Fortnite Festival* “battle stage,” while the main *Fortnite Festival* rhythm game, featuring different pop stars each season, will continue online.
The cuts at Epic are part of broader struggles in the live-service gaming sector, with other recent industry layoffs like the shutdown of *Highguard* and staff reductions at EA and Riot Games.
Sweeney’s note concluded by acknowledging the challenging market, filled with upheaval and opportunity. He expressed Epic’s ambition to succeed for its players and partner with like-minded developers for a thriving future in entertainment.