Epic Games is cutting more than 1,000 jobs as players spend less time playing Fortnite, its cash-cow battle royale title. The reduction, about 20% of the workforce, is the company's second major layoff in three years; 830 roles were eliminated in 2023, reports the New York Times. CEO Tim Sweeney told staff in a post that the company had been "spending significantly more than we're making" as engagement began to slide in 2025, and said the layoffs, in addition to more than $500 million in other cost cuts, should put Epic "in a more stable place." Bloomberg frames the move as a hit to new Disney CEO Josh D'Amaro in his first week on the job; Disney sunk $1.5 billion into Epic in 2024 to create a universe centered around its characters.
Sweeney framed the pain as both industry-wide and Fortnite-specific, citing weaker growth and spending, softer console sales, and competition from other games and short-form video platforms. Fortnite remains a top title on PlayStation and Xbox, but average playtime has dropped several hours since early 2025. Epic is trying to shore up revenue by raising prices for its in-game currency V-Bucks, citing higher operating costs, and by pushing back at Apple's App Store and Google Play after years of antitrust battles. Laid-off workers will get at least four months' pay and six months of health coverage in the US, Sweeney said. "I'm sorry we're here again," he wrote.
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