Fortnite maker Epic is laying off over 1,000 workers | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentAIExpandOpenAIAnthropicSee all AIPolicyExpandAntitrustPoliticsLawSecuritySee all policyGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersArchivesStoreVerge Product UpdatesSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Fortnite maker Epic is laying off over 1,000 workersComments DrawerCommentsLoading commentsGetting the conversation ready...GamingCloseGamingPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All GamingEntertainmentCloseEntertainmentPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All EntertainmentFortniteCloseFortnitePosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All FortniteFortnite maker Epic is laying off over 1,000 workersTim Sweeney says the job cuts are due to a ‘downturn in Fortnite engagement.’Tim Sweeney says the job cuts are due to a ‘downturn in Fortnite engagement.’by Andrew WebsterCloseAndrew WebsterSenior entertainment editorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Andrew WebsterMar 24, 2026, 2:54 PM UTCLinkShareGiftIf you buy something from a Verge link, Vox Media may earn a commission. See our ethics statement.Image: Epic GamesAndrew WebsterCloseAndrew WebsterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Andrew Webster is an entertainment editor covering streaming, virtual worlds, and every single Pokémon video game. Andrew joined The Verge in 2012, writing over 4,000 stories.Layoffs have hit Fortnite developer Epic Games again. Today CEO Tim Sweeney announced that the company is cutting more than 1,000 jobs, citing a downturn in engagement for Fortnite dating back to last year. “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,” he wrote.The layoffs follow a reduction of more than 800 roles in 2023. Sweeney’s note listed a number of industry-wide issues that have plagued the live-service games space over the last several years, including increased competition and reduced consumer spending. But he also admitted that some of Epic’s issues are specific to Fortnite.“Despite Fortnite remaining one of the most successful games in the world, we’ve had challenges delivering consistent Fortnite magic with every season; we’re only in the early stages of returning to mobile and optimizing Fortnite for the world’s billions of smartphones; and in being the industry’s vanguard we have taken a lot of bullets in a battle which is only in the early days of paying off for ourselves and all developers,” he explained.RelatedLive-service games are a messMarathon is in a sprintSweeney also specifically noted that today’s layoffs are not related to AI. Impacted employees will receive a severance package with four months’ pay and, for US-based workers, six months of paid healthcare.There were signs things weren’t going well earlier this month when Epic hiked the price of V-bucks — Fortnite’s in-game currency — saying simply that “the cost of running Fortnite has gone up a lot and we’re raising prices to help pay the bills.” As part of the news, Epic will also be winding down a trio of Fortnite’s game modes: Rocket Racing, Ballistic, and the Fortnite Festival “battle stage.” The main Fortnite Festival, a rhythm game developed by Harmonix that is headlined by a different pop star each season, will remain online.The cuts at Epic are just the latest casualties in the cutthroat live-service space. The last few weeks have been particularly brutal: free-to-play shooter Highguard shut down earlier this month after the studio was hit with layoffs; EA laid off an unspecified number of developers working on Battlefield 6, despite boasting about the game having the “biggest launch in franchise history”; League of Legends maker Riot cut staff on its new fighting game 2XKO; and Remedy released the final update for its troubled team shooter FBC: Firebreak, though the studio plans to keep the game alive for the foreseeable future.“Market conditions today are the most extreme we’ve seen since [our] early days, with massive upheaval in the industry accompanied by massive opportunity for the companies that come out as winners on the other side,” Sweeney said in his note. “That’s what we’re aiming to do for our players, and we aim to bring other like-minded developers in the industry along on the journey to build an increasingly open and vibrant future of entertainment together.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Andrew WebsterCloseAndrew WebsterSenior entertainment editorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Andrew WebsterEntertainmentCloseEntertainmentPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All EntertainmentFortniteCloseFortnitePosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All FortniteGamingCloseGamingPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All GamingMost PopularMost PopularNvidia CEO Jensen Huang says ‘I think we’ve achieved AGI’The US government just banned consumer routers made outside the USDonut Lab’s solid-state battery could barely hold a charge after getting damagedConfronting the CEO of the AI company that impersonated meVideoSome writing advice from Project Hail Mary’s Andy WeirThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.Advertiser Content FromThis is the title for the native adMore in GamingAyaneo says selling its Windows gaming handheld ‘is no longer sustainable’Nintendo cuts Switch 2 production amid weakening console salesPDP’s wireless guitar controller has returned to its best price to dateCrimson Desert dev apologizes for use of AI artAI was everywhere at gaming’s big developer conference — except the gamesOeuf is a punishing platformer in a cozy shellAyaneo says selling its Windows gaming handheld ‘is no longer sustainable’Emma RothTwo hours agoNintendo cuts Switch 2 production amid weakening console salesJess Weatherbed11:45 AM UTCPDP’s wireless guitar controller has returned to its best price to dateCameron FaulknerMar 23Crimson Desert dev apologizes for use of AI artTerrence O'BrienMar 22AI was everywhere at gaming’s big developer conference — except the gamesJay PetersMar 22Oeuf is a punishing platformer in a cozy shellGeoffrey BuntingMar 21Advertiser Content FromThis is the title for the native adTop StoriesAn hour agoMeta’s reckoning over kids safety is in the hands of two juriesMar 23The US government just banned consumer routers made outside the USTwo hours agoThe MPC Sample is my new favorite portable beat makerAn hour agoJohn Deere, Garmin, and Philips may have undermined military right to repairMar 23Confronting the CEO of the AI company that impersonated meVideoMar 23Nvidia CEO Jensen Huang says ‘I think we’ve achieved AGI’The VergeThe Verge logo.FacebookThreadsInstagramYoutubeRSSContactTip UsCommunity GuidelinesArchivesAboutEthics StatementHow We Rate and Review ProductsCookie SettingsTerms of UsePrivacy NoticeCookie PolicyLicensing FAQAccessibilityPlatform Status© 2026 Vox Media, LLC. 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Epic Games, the developer of the globally popular battle royale title *Fortnite*, has announced a significant restructuring involving the elimination of over 1,000 positions across its workforce. This action, as detailed by CEO Tim Sweeney, is primarily attributed to a downturn in *Fortnite* engagement that began approximately last year. Sweeney’s communication, released on March 24, 2026, outlines a strategy to bolster the company’s stability following a series of challenges encompassing the broader live-service gaming industry. These challenges include intensified competition within the gaming market and a discernible decline in consumer spending, issues that Tim Sweeney specifically highlighted as impacting *Fortnite*.

The layoffs represent a continuation of a previously announced reduction of over 800 roles implemented in 2023. Sweeney’s rationale extends beyond simple financial considerations, incorporating observations about the wider industry landscape. He cited the increased competition and reduced consumer spending trends as contributing factors, alongside ongoing difficulties in consistently delivering innovative content and optimizing *Fortnite* for the vast array of mobile devices worldwide. Furthermore, he acknowledged the significant investments Epic Games has made in developing and innovating in the gaming space, often dubbed “taking a lot of bullets,” suggesting a recognition of past strategic choices having incurred substantial costs.

The announcement includes a reduction in three *Fortnite* game modes – Rocket Racing, Ballistic, and the Fortnite Festival – alongside a winding down of the festival’s rhythm game component headlined by rotating pop stars. However, the core *Fortnite* experience remains accessible to players. Employees impacted by the layoffs will receive a severance package consisting of four months’ salary, with an additional six months of paid healthcare benefits for those based in the United States. The move was precipitated by a recent price increase for V-Bucks, *Fortnite’s* virtual currency, justified by Epic Games as a necessary response to rising operational costs.

The situation reflects broader trends within the live-service gaming sector, as indicated by subsequent developments. Notably, the closure of Highguard, a free-to-play shooter, following a series of layoffs within the studio, and the restructuring at Riot Games surrounding its upcoming fighting game, *2XKO*, underscore turbulent conditions within the industry. Additionally, Remedy’s decision to discontinue development on *FBC: Firebreak*—a prior team-based shooter—highlights the pressures faced by developers in a competitive environment, despite initial projected success.

Tim Sweeney’s statement reveals an awareness of the extreme market conditions currently prevailing, characterized by significant upheaval and creating opportunities for companies that demonstrate resilience and adaptability. He articulates Epic Games’ ambition to become a leading participant in this evolving landscape, aiming for a future defined by an open and vibrant entertainment ecosystem fostered through collaboration and innovation. The layoffs are presented as a tactical step toward achieving this long-term vision, demonstrating a commitment to operational stability amid considerable pressures.