Epic Games, the publisher behind popular video game Fortnite, announced on Tuesday that it is laying off more than 1,000 employees. This represents about a quarter of its workforce.
Key Takeaways
Epic Games has laid off more than 1,000 employees as it faces challenges from slowing Fortnite engagement and industry-wide struggles. This represents about a quarter of its workforce.
- Epic Games lays off over 1,000 employees to cut costs
- CEO Tim Sweeney attributes cuts to slower growth and weaker spending in the gaming industry
- Company is still recovering from legal battles with Apple and Google over mobile app payments
- Fortnite's popularity has declined, leading to lower engagement and revenue
The Cary, North Carolina-based company cited industry-wide challenges such as slower growth and weaker spending in the gaming sector. CEO Tim Sweeney emphasized that these job cuts are not related to artificial intelligence but rather stem from tougher cost economics and competition for user engagement against other forms of online entertainment.
According to PBS, Epic Games has been grappling with its own company-specific hurdles, including the early stages of returning to mobile after court battles with Apple and Google over app store payments. The company's last large-scale layoffs occurred in 2023 when it cut 830 jobs.
The Los Angeles Times reported that Epic is also cutting $500 million in costs, particularly from its Reality Labs division where employees work on virtual reality and augmented reality efforts. The company's flagship game Fortnite has faced challenges delivering consistent engagement with every season since its release in 2017.
The layoffs come amid a broader trend of job cuts across the gaming industry. As reported by CBS News, Epic Games is not alone, as companies including Electronic Arts and Microsoft's Xbox division have also reduced their workforces. The company plans to focus on building new Fortnite experiences and accelerating its developer tools.
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