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Back in 2023, Epic Games had to undergo massive cuts, reducing headcount by around 870 employees due to financial constraints. Now in 2026, Epic Games has found itself in a similar position once again. This time, Epic is letting go of over 1000 employees.
Epic Games says the mass layoffs will happen in conjunction with $500 million worth of cost-saving measures impacting contracting, marketing and other areas of the business. Epic Games CEO, Tim Sweeney, says that these measures will put Epic Games “in a more stable place”.
Epic says it is facing industry-wide challenges, including slower growth, weaker spending and lower current-generation console sales, along with increased competition from other forms of entertainment.
The company also claims that “market conditions today are the most extreme” they've experienced since the early days of the company in the 1990s.
Those impacted by the mass layoffs will receive a severance package that includes four months of salary pay, with some getting additional money based on the length of time they spent at the company. Epic Games will also continue to pay for health coverage for those impacted, which is particularly important in the US.
You can read Tim Sweeney's full blog post detailing the layoffs, HERE.
KitGuru Says: This announcement, combined with the recent price increase for V-Bucks indicates that Fortnite growth has slowed. With that said, it was still a top 5 most-played online PC game in 2025, coming in behind the likes of Counter-Strike 2, Roblox, League of Legends and Minecraft.
