Epic Games has announced the layoffs of 1,000 employees, citing a decline in Fortnite engagement as the catalyst.
Epic Games announced today the layoffs of 1,000 employees. This news arrives mere days after the March 2026 launch of Fortnite Chapter 7 Season 2 and the controversial increase in the cost of V-Bucks. According to Epic’s official statement, these layoffs will free up capital as the company faces “industry-wide challenges.”
Epic Games blames layoffs on the downturn in Fortnite engagement
Epic has been under intense scrutiny over the last few weeks, following the increase in the cost of V-Bucks, which the company said was to “help pay the bills.” Players did not take kindly to the news. Many went as far as to cancel their Fortnite Crew subscriptions and to boycott the game on March 19, 2026.
Unfortunately, the situation has only worsened, with Epic Games announcing layoffs of 1,000 employees. The statement sent to employees today reads, ” 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.”
It continued, “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.” Epic Games proceeded to identify the challenges they face today:
- Slower growth,
- Weaker spending
- Tougher cost economics
- Current consoles selling less than last generation’s
- Games competing for time against other increasingly-engaging forms of entertainment
The statement further outlined Epic’s challenges in delivering consistent Fortnite magic with every season. Epic made a point of noting that these layoffs are not AI-related, given that many companies have turned to AI as a replacement for people.
Former employee speaks out on these unexpected layoffs
Evan Kinney, who worked as a principal engineer at Epic Games, announced he was among the 1,000 employees the company had laid off. Kinney joined Epic Games in 2017 and has worked for the company for nearly nine years. He outlined his confusion and bewilderment at this decision, stating that he worked to debug the game’s new Rivalry system while recovering from pneumonia.
He continued, elaborating how hard he worked for the company and its games “just to be thrown out.” This is a glimpse of the 1,000 employees who were affected by today’s layoffs. The employees will receive a severance package including at least four months of base pay and Epic-paid healthcare coverage.
Moving through 2026 and beyond, Epic’s plans to right the ship include building “awesome Fortnite experiences with fresh seasonal content, gameplay, story, and live events,” amongst other ideas for improvement.