Epic Games lays off over 1,000 employees following "downturn in Fortnite engagement"
GamesIndustry.biz • • general
Key Points:
- Epic Games is laying off over 1,000 employees due to a downturn in Fortnite engagement and spending exceeding revenue, prompting major cost-cutting measures to stabilize the company.
- CEO Tim Sweeney emphasized that the layoffs are not related to AI and highlighted industry challenges such as slower growth, weaker spending, higher costs, and lower console sales compared to the previous generation.
- Affected employees will receive severance packages including at least four months of base pay, extended healthcare coverage, accelerated stock options through January 2027, and extended equity exercise options.
- This round of layoffs follows a similar reduction in September 2023 when over 800 employees were cut, with Epic having implemented net-zero hiring and reduced marketing expenses but still facing financial sustainability issues.
- The layoffs also impacted teams from Fall Guys developer Mediatonic and 250 employees from the acquired music storefront Bandcamp.
