Chief Executive Officer Tim Sweeney said Fortnite activity has declined since 2025 and company spending has exceeded revenue, prompting broad cost reductions.
Epic Games said it will lay off more than 1,000 employees and reduce costs by over $500 million. Chief Executive Officer Tim Sweeney stated that Fortnite user activity has fallen since 2025 and that the company has been spending more than it earns. The company said affected employees will receive at least four months of severance, along with extended healthcare coverage and more time to exercise stock options.