Epic Games cuts 1,000 jobs, says Fortnite engagement is down
TechCrunch • • general
Key Points:
- Epic Games is laying off 1,000 employees due to a significant downturn in Fortnite engagement that began in 2025, leading to financial losses.
- CEO Tim Sweeney emphasized the need for major cost cuts, including layoffs and over $500 million in savings from contracting, marketing, and closing open roles, to stabilize the company.
- The company recently increased the price of Fortnite’s in-game currency, V-Bucks, citing rising operational costs.
- Sweeney clarified that the layoffs are not directly caused by AI automation, though industry-wide issues like chip shortages and reduced consumer spending may be indirectly affecting the business.
- Affected employees will receive four months of severance pay, extended for longer tenures, and U.S. employees will have healthcare coverage continued for six months post-layoff.
