Epic games lays off over 1,000 amid fortnite revenue slump

Epic Games has announced the impending layoffs of over 1,000 employees across various departments, citing the significant decline in Fortnite's popularity since 2025 as the primary reason. CEO Tim Sweeney stated that the company's revenue has been outpacing expenses, but the current situation has reversed this trend.

Fortnite's struggles in a slowing gaming industry

Sweeney pointed to a broader slowdown in the gaming industry, with console sales declining and players reducing their spending due to the global economic challenges. Despite this, Fortnite remains one of the world's most successful games, generating 1.7 times more revenue per hour played than the average. However, the recent 29% drop in player engagement time has significantly impacted earnings.

In an effort to mitigate these effects, Epic Games recently increased the premium currency price in Fortnite, a move that hinted at the company's financial difficulties. The layoffs, coupled with cost-cutting measures such as reducing the marketing budget and external contracts, aim to put the company on a more stable footing.