"Tim Sweeney stated that the layoffs are necessary due to a downturn in Fortnite engagement, which has left the company spending significantly more than it is making. He emphasized the need for major cuts to keep the company funded."
"Sweeney acknowledged that Epic is facing industry-wide challenges, including slowed growth and increased competition for user engagement, while also dealing with unique struggles related to maintaining Fortnite's appeal and mobile accessibility."
"In his note, Sweeney mentioned that the layoffs are not related to AI, expressing a desire to retain talented developers to create great content and technology."
Epic Games is laying off more than 1,000 employees due to a significant drop in engagement with Fortnite, which began in 2025. CEO Tim Sweeney stated that the company is spending more than it earns and must make major cuts to remain funded. Alongside layoffs, Epic is implementing $500 million in cost savings. Sweeney acknowledged industry-wide challenges, including slowed growth and increased competition, while also noting unique struggles for Epic, such as delivering consistent content and legal battles affecting mobile access.
Read at www.bbc.com
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