Epic Games Lays Off Over 1,000 Employees As Fortnite Struggles To Maintain Momentum

Fortnite has been declining in popularity, to the point that not only are several game modes going offline this year, but over 1000 employees are being laid off from Epic Games. Fortnite's past success, constant tie-in promotions with a multitude of products and services, and a healthy player base despite the "downturn in Fortnite engagement", however, Epic Games apparently had no other solution than to lay off about 20% of its workforce.

While some are decrying the move, Epic Games is offering generous packages to the folks being let go. Employees being laid off will receive "at least four months of base pay, with more based on tenure" and US-based employees will receive paid healthcare coverage for six months. There will also be "stock options vesting through January 2027 and extend equity exercise options for up to two years".

This is more reminiscent of a Google layoff than a Respawn layoff, and despite the terrible news, is a nice gesture from Epic that will hopefully give its former employees time to find gainful employment elsewhere. CEO Tim Sweeney also pointed out in a tweet that this wasn't "a performance-based rightsizing" and Epic had never lowered its hiring standards, encouraging other studios to pick up his former employees. It does come off as somewhat backhanded in context, though, especially since some of the employees being laid off have been at Epic for over ten years.

In the coming days, employers will see a stream of resumes of once-in-a-lifetime quality folks. An important thing to understand is that Epic never lowered our hiring standards as we grew, and the layoff wasn't a performance-based "rightsizing" as companies call it nowadays. It's… https://t.co/3SvyWNC04k

— Tim Sweeney (@TimSweeneyEpic) March 25, 2026

Hopefully the employees impacted by these firings find positions with long-term stability. Maybe some will consider leveraging their experience and going fully independent. No one who made Silksong or Expedition 33 got laid off after making a successful game, after all.