Epic Games, the developer behind the widely popular game Fortnite, initiated a significant reduction in its workforce by laying off over 1,000 employees. The layoffs, announced on Wednesday, come as the company grapples with financial difficulties tied to declining engagement with its flagship game.
In an open letter to employees, Tim Sweeney, founder and CEO of Epic Games, attributed the decision to mounting financial pressures. "The downturn in Fortnite engagement that started in 2025 means we're spending significantly more than we're making, and we have to make major cuts to keep the company funded", Sweeney explained.
The workforce reduction is part of broader cost-cutting measures undertaken by the company. Sweeney detailed that, alongside the layoffs, Epic Games has identified over $500 million in savings through reductions in contracting, marketing, and the closure of some open roles. These measures aim to stabilize the company amid a challenging period.
While exact engagement figures for Fortnite were not disclosed by Sweeney, independent trackers have documented significant declines in player activity. According to data from Fortnite.GG and ActivePlayer.io, the game's daily average player count, which had surpassed one million for over two years, has dropped substantially. After peaking at 3.1 million in December 2023, the average daily player count fell to approximately 835,000 by September of the following year. Player numbers have since struggled to recover, remaining below the one-million threshold.
The layoffs and cost-saving measures mark a pivotal moment for Epic Games as it seeks to navigate the financial strain caused by reduced engagement in its primary revenue-generating title. For now, the company hopes these actions will secure a more stable future.
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