Epic Games is laying off more than 1,000 employees amid a drop in “Fortnite” players and challenges across the gaming industry.
Player activity in “Fortnite,” a free-to-play game where users compete to be the last one standing, has been declining since last year, leaving the company “spending significantly more than we’re making,” CEO Tim Sweeney said in a message to employees Tuesday, also posted on Epic’s website.
“I'm sorry we're here again,” Sweeney wrote. “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. This layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place.
Fortnite, once a global gaming phenomenon, continues to attract millions of players, but engagement has dropped significantly from its peak. Current estimates put the game at around 110 to 120 million monthly active players worldwide, with daily active users generally ranging from 1 to 3 million, according to tech blog Beebom. Peak concurrent players, the number online at the same time, typically fall between 1.8 and 3.5 million, depending on the season and in-game events.
At its height in late 2024 and early 2025, Fortnite saw far higher numbers. Reports indicated more than 14 million concurrent players during major events, with as many as 44.7 million players logging in on a single day, Esports.net reports.
Sweeney said some of Epic’s challenges are industry-wide, including weaker consumer spending and increased competition from other games and digital entertainment. Internal factors, such as inconsistent seasonal activity in “Fortnite” and the early stages of its return to mobile, have also weighed on performance.
The company clarified that the layoffs are not related to artificial intelligence. Epic plans to continue investing in developers and tools to support content creation and game development, Sweeney said.
The company, founded in 1991, previously cut over 800 jobs, or 16 percent, in September 2023 for similar financial reasons.
Employees affected by the layoffs will receive severance packages, including at least four months of base pay, extended healthcare coverage, accelerated stock vesting through January 2027, and extended equity exercise options for up to two years.
“At Epic, we pride ourselves in only hiring the industry's best, so it is very painful to part with so many talented people,” Sweeney said.
Epic plans a company-wide meeting Thursday to provide employees with a detailed update on its roadmap and future plans, he concluded.
