""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," says Sweeney."
""Despite Fortnite remaining one of the most successful games in the world, we've had challenges delivering consistent Fortnite magic with every season," admits Sweeney."
""We're only in the early stages of returning to mobile and optimizing Fortnite for the world's billions of smartphones," admitted Sweeney."
""It's actually kind of staggering when you think about it. Fortnite users have been dropping significantly over the last year, yet revenue continues to be extremely high, with 2025 expected to have been around $6-billion.""
Epic is laying off 1,000 employees primarily due to a decline in Fortnite engagement, which has led to increased spending. Tim Sweeney stated that the company is spending more than it earns, necessitating major cuts. Despite Fortnite's success, challenges in maintaining consistent engagement and ongoing legal issues have contributed to financial instability. The Epic Store also operates at a loss, exacerbating the situation as Fortnite's revenue cannot offset these losses.
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