Fortnite Creator Epic Games Cuts Over 1,000 Jobs as Gaming Industry Struggles

Epic Games, the company behind popular video game Fortnite, announced Tuesday it's eliminating more than 1,000 positions due to financial pressures. The North Carolina-based gaming company cited industry-wide challenges including reduced player spending and increased competition from social media platforms.

The video game company responsible for creating Fortnite announced Tuesday that it will eliminate more than 1,000 positions as part of cost-cutting measures while facing both widespread industry difficulties and internal business challenges.

Epic Games, headquartered in Cary, North Carolina, informed staff members through an internal communication that these workforce reductions are unrelated to artificial intelligence developments. Instead, the company pointed to broader industry problems including reduced growth rates, decreased consumer spending, and more challenging financial conditions. Popular gaming titles like Fortnite now face increased competition from social media platforms and various other digital entertainment options vying for users’ time.

The gaming company also acknowledged facing unique internal obstacles, noting that it remains in the beginning phases of re-establishing its mobile presence following legal disputes with tech giants Apple and Google regarding app store payment systems.

Company CEO and founder Tim Sweeney addressed employees in the memo, stating: “This isn’t our first time being here. Epic survived upheavals in 1990s with the move from 2D to 3D with Unreal 1; in the 2000s building console games with Gears of War; and in 2012 moving to online gaming with Paragon and Fortnite.”

Sweeney continued: “Market conditions today are the most extreme we’ve seen since those early days, with massive upheaval in the industry accompanied by massive opportunity for the companies that come out as winners on the other side.”

Following Tuesday’s workforce reduction, Epic Games now employs approximately 4,000 people, with the layoffs representing roughly 20% of its total staff.

The gaming company previously conducted significant job cuts in 2023, when it eliminated 830 positions, which represented approximately 16% of its workforce during that period.