Epic Games axes over 1,000 jobs due to the 'downturn in Fortnite engagement'

Epic Games has announced job losses of over 1,000 due to what's described as a downturn in engagement with its juggernaut of a game Fortnite.

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The Hollywood Reporter informs us that the news came from the CEO, Tim Sweeney, who said:

"The downturn in Fortnite engagement that started in 2025 means we're spending significantly more than we're making, and we have to make major cuts to keep the company funded. This layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place."

• Read more: Epic Games lead producer calls gamers thinking DLSS 5 detracts from art direction 'insane'

Sweeney further observed that some of the challenges Epic is facing aren't unique to the company, but are industry-wide headwinds. That includes more difficult economic conditions across a number of fronts, as well as "games competing for time against other increasingly-engaging forms of entertainment".

The Epic CEO noted that the current market conditions for the gaming industry were the "most extreme we've seen since those early days", meaning the 1990s, when lots of factors changed the scene dramatically - from the rise of 3D shooters and game engines, through to the start of online gaming (ahh, QuakeWorld).

Perhaps unsurprisingly, Sweeney also made it clear that AI isn't to blame for the job losses here.

Recently the lead producer of Epic Games came down hard in support of the AI trickery in DLSS 5, which as you've doubtless noticed has been controversial to say the least. Jean Pierre Kellams said gamers "roasting DLSS 5 like it doesn't look better/is detracting from art direction are absolutely insane", praising the huge step forward with lighting and shading improvements in his opinion.