Epic Games to Lay Off Over 1,000 Workers Amid Fortnite Slowdown

Epic Games is laying off more than 1,000 employees as the company navigates a decline in Fortnite engagement and wider industry challenges.

According to officials, 211 of those job cuts will impact workers at the company’s Cary, North Carolina location. The move comes as the gaming giant works to reduce costs and adjust to shifting market conditions.

In a message to employees, CEO Tim Sweeney said the layoffs are not related to artificial intelligence, but rather to a drop in Fortnite engagement that began in 2025. He noted the company has been spending more than it is earning, prompting the need for significant cost-cutting measures.

Epic Games also announced plans to save more than 500 million dollars through reductions in areas like contracting, marketing, and unfilled positions.

The layoffs are part of a broader trend across the gaming industry, as companies respond to increased competition and evolving consumer habits.

Industry experts say gaming remains highly popular, but companies are shifting resources as new technologies and platforms emerge, including expanded use of gaming in education and other sectors.

The company’s plans to build a new corporate headquarters in Cary also remain uncertain, with no recent updates on the project.

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