""I'm sorry we're here again," Epic Games CEO Tim Sweeney said in a note to Epic employees. "The downturn in Fortnite engagement that started in 2025 means we're spending significantly more than we're making, and we have to make major cuts to keep the company funded.""
""This layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place," Sweeney continued."
""Some of the challenges the company is facing were industry-wide. Those challenges included lower growth, weaker spending, and tougher cost economics; current consoles selling less than last generation's; and games competing for time against other entertainment.""
""Epic argued both companies violated antitrust laws by forcing users to pay for apps and in-app purchases through their app marketplaces, while taking a slice of every transaction.""
Epic Games announced layoffs of 1,000 employees, representing 20% of its workforce, due to a downturn in Fortnite engagement and financial difficulties. CEO Tim Sweeney stated that the company is spending more than it earns, necessitating major cuts. The layoffs follow previous job cuts in 2023 and are part of broader industry challenges, including lower growth and competition for consumer attention. Unique challenges for Epic include ongoing legal battles with Google and Apple over app store policies, which have impacted the company's operations.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]