Epic Games, the producer of Fortnite, has announced the layoff of over 1,000 staff, citing a drop in participation with its popular online game. In an email to employees on Tuesday, Epic CEO Tim Sweeney apologized for the cuts, citing a “downturn” in Fortnite engagement beginning in 2025.
He stated that this has resulted in it “spending significantly more than we’re making” and the necessity to “make major cuts to keep the company funded. It comes after the firm recently raised the price of Fortnite’s in-game currency, V-Bucks, to “help pay the bills” due to rising operating costs.Sweeney’s statement to employees, published on Epic’s website, stated that the new round of layoffs, together with $500 million (£373 million) in identified cost savings across other aspects of its operations, will put the company “in a more stable place.
He said that it was dealing with industry-wide difficulties such as slowing growth, reduced investment, and more competition for user engagement from other media. However, Sweeney acknowledged Epic’s “unique” problems, despite Fortnite’s sustained success.
Among these, he claimed, were producing “consistent Fortnite magic with every season” and providing a full mobile experience for smartphone users, following lengthy legal battles with Apple and Google to allow the program to be available on their platforms.
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