CARY, N.C. (WPTF) – Cary based Fortnite video game developer Epic Games is laying off 1,000 of its staff, due to a “downturn in engagement.”
In an open letter to employees posted on their website Tuesday (March 24), company founder and CEO Tim Sweeney 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.”
Sweeney went on to say there were “industry-wide challenges: slower growth, weaker spending, and tougher cost economics; current consoles selling less than last generation’s; and games competing for time against other increasingly-engaging forms of entertainment.”
He also said that while Fortnite remains one of the most successful games in the world, the company has had challenges “delivering consistent Fortnite magic with every season” and optimizing Fortnite for the world’s billions of smartphones.
He went on say the layoffs are not related to Artificial Intelligence noting: “To the extent it improves productivity, we want to have as many awesome developers developing great content and tech as we can.”
He noted Epic survived upheavals in 1990’s with the move from 2D to 3D with Unreal 1; in the 2000’s building console games with Gears of War; and in 2012 moving to online gaming with Paragon and Fortnite.
The company plans to offer impacted workers a severance package that includes at least four months of base pay, with more based on tenure and healthcare coverage for up to six months.
This latest layoff comes after cutbacks in 2003, which included about 830 workers. At the time, the company employed more than 4,000 people.
Company leaders plan to meet with the affected staff on Thursday.