Epic Games is laying off 1,000 employees on Tuesday, according to a company memo posted on Epic. blog.
“The decline in Fortnite engagement starting in 2025 means we are spending more than we are earning, and we will have to make bigger cuts to keep the company funded,” Epic Games CEO Tim Sweeney wrote in the memo. “This layoff, combined with identified cost savings of over $500 million in contracting, marketing and closing some open roles, puts us in a more stable position.”
Last week, epic too increased the price V-Bucks, the Fortnite in-game currency, says “the cost of running Fortnite has increased greatly.”
Sweeney said the layoffs were not caused by AI making developers’ jobs redundant. However, indirectly, the company may face AI-related hurdles, as the shortage of RAM and demand for chips has had an impact on the entire industry, and has also affected consumer spending.
Laid-off employees will receive four months of severance pay, with those with longer tenure receiving higher pay. Epic will continue to pay for the health care of US employees for six months after layoffs.
