Epic Games to cut more than 1,000 jobs as Fortnite usage falls

March 24, 2026 - 23:56

In a significant restructuring move, Epic Games has confirmed it will lay off approximately 1,100 employees, representing about 16% of its total workforce. The company cited unsustainable financial spending as the primary driver, linking the decision to a recent and sharp decline in user engagement with its flagship title, Fortnite.

Company leadership stated that for some time, spending has far outpaced earnings. While Fortnite is experiencing a resurgence in growth, much of this revenue is now directed toward content creators and the competitive ecosystem rather than flowing directly back to Epic. This shift, combined with the broader success of the creator economy model within the game, has necessitated a major cost-cutting initiative to achieve long-term stability.

Beyond the layoffs, Epic is divesting recent acquisitions, including the music platform Bandcamp and the marketing firm SuperAwesome. The remaining workforce will also face internal restructuring. The company emphasized that core development for Fortnite and its Unreal Engine technology remains a top priority, asserting these cuts are essential to fund future ambitions without the burden of excessive operational costs. The announcement marks one of the largest single workforce reductions in the video game industry this year.