Epic Games lays off 1,000 employees due to declining engagement

Epic Games has announced significant layoffs, cutting 1,000 jobs due to a notable decrease in Fortnite engagement since 2025. CEO Tim Sweeney stated in a company memo that the decline in player activity has led to spending exceeding revenue, necessitating these drastic measures to ensure the company's financial stability. The company is also implementing cost-saving measures in contracting and marketing, alongside closing open positions. This move follows a recent price increase for Fortnite's in-game currency, V-Bucks, attributed to rising operational costs. Sweeney clarified that the layoffs are not a direct result of AI replacing developers.