Epic Games lays off more than 1,000 employees due to declining participation in Fortnite

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By Rita Ora

Epic Games is once again making a significant cut to its workforce. In September 2023, it laid off 800 employees representing 16% of its workforce, and today it publishes a statement announcing its intention to get rid of more than 1,000 workers. The reason is simple: a decline in participation in Fortnite that began in 2025. Epic Games has built an empire around this game free-to-playso any ups and downs in its popularity or player spending directly impacts its coffers.

Epic Games' message to its employees is quite reminiscent of 2023. Three years ago it acknowledged that «we have been spending much more money than we earn for some time,» and today it assures that «we are spending significantly more than we earn.» The words used will matter little to workers who have lost their jobs. The fact is that Epic Games says it has to make significant cuts to stabilize its position, so the layoffs are in addition to a cost savings plan of more than half a billion dollars.

In parallel, Epic Games has announced that Fortnite's Rocket Racing, Ballistic and Festival Battle Stage are saying goodbye because they have not managed to attract and retain a sufficient number of players to justify their existence. Rocket Racing will no longer be available on islands created with the Unreal Editor for Fortnite (UEFN) in October 2026; Ballistic will disappear with an update on April 16; and that same day Festival Battle Stage will also say goodbye, a musical experience divided into three modes.

Epic Games assures that some of the challenges it faces affect the entire sector, including slower growth, lower spending by players, current consoles selling less than those of the previous generation and competition for users' time with other «increasingly attractive» forms of entertainment. The company also recognizes that its battle with Apple and Google has had a cost, although after the agreement with Google and the return of Fortnite to Android it hopes to begin to reap the benefits.

All in all, Epic Games maintains that Fortnite remains one of the most successful games in the world.

In its statement, Epic Games assures that «the layoffs are not related to AI.» The company recognizes that this tool improves productivity, but says it requires talented developers to create quality content and technology. Epic Games will continue working on Fortnite (seasons, gameplay, events…) and providing development tools with Unreal Engine 5 and UEFN as it evolves to Unreal Engine 6.