Epic Games employees just got some very bad news on Tuesday, March 24, 2026. The American company has decided to lay off more than 1,000 of its 4,800 employees, as of the latest count.
To explain this round of layoffs, Tim Sweeney cited a decline in engagement with Fortnite that began in 2025. In addition to these layoffs, Epic has achieved over $500 million in cost savings through outsourcing, marketing, and the elimination of unfilled positions.
It is also noted that “the layoffs aren’t related to AI”. The company also points to “slower growth, weaker spending, and tougher cost economics” and even current-generation consoles selling less, as well as other forms of entertainment competing with video games. The ever-present market instability and “major upheavals in the industry” are also highlighted.
Those laid off will receive severance pay equivalent to at least four months’ salary, plus an additional amount based on length of service. In 2023, Epic Games had already laid off approximately 830 employees.
