It was an emotional day in the video game industry after Epic Games announced mass layoffs that will see 1,000 people lose their jobs. This is one of the largest mass layoffs to hit the gaming industry since 2024.
Tim Sweeney, CEO of Epic Games
“Today we’re laying off over 1000 Epic employees,” read a message sent to employees. “I’m sorry we’re here again. 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.”
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“Some of the challenges we’re facing are 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.”
The decision was partly blamed on the challenges the company has faced in “delivering consistent Fortnite magic with every season”. The company’s CEO, Tim Sweeney, used the opportunity to emphasize the legal battles they have fought that would benefit all developers. Since most recent layoffs are blamed on AI, Epic Games CEO mentioned that this one wasn’t.
“Since it’s a thing now, I should note that the layoffs aren’t related to AI. To the extent it improves productivity, we want to have as many awesome developers developing great content and tech as we can.”
Sweeney mentioned that those impacted by the layoffs will receive severance packages that include at least four months of base pay and Epic-paid healthcare coverage (6 months for developers in the U.S.). The company will also “accelerate their stock options vesting through January 2027 and extend equity exercise options for up to two years”.
Impacted and unimpacted Epic Games employees are grieving
It was an emotional day as many of those impacted by the latest round of mass layoffs at Epic Games took to social media to share their experiences working in the company or how the mass layoffs have impacted them.
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Senior UX designer Timothy Kviz wrote, “My time at Epic Games has come to an unfortunate end as I was impacted by the layoffs today. Epic was one of the best places I have had the pleasure to work for in 25+ years and I was committed to making our efforts on mobile a success. There is a pool of 1,000 crazy talented people that just hit the market, go hire them, and if you see or hear about anything that you think might be a fit, hit me up!”
Frontend web developer Ilya Gorenburg wrote, “Sad today for our company and myself. Epic Games laid off 1000 people today. I’m among of that 1000. It was great journey with all of you! Great team, great projects! Sad end.”
Social media manager Abbie Williams wrote, “Unfortunately after the most fun 5 and a half years, my role at Epic Games is at risk. From Mediatonic & Fall Guys, to Epic & LEGO Fortnite & Fortnite and everything in between, it’s been wild and I feel so lucky to have had a job I truly loved so much for so long. Lots of love to all my colleagues who are also affected”
Although the direct impact was felt by those affected by the layoff, some of those left behind also took to social media to share how the latest round of mass layoffs has impacted them.
Led UI engineer Liz Barrett wrote, “Today was a heavy day at Epic Games, with layoffs impacting many people across the company. While I’m grateful to still be in my role, my heart is heavy seeing so many teammates I’ve had the privilege of working with affected. These are individuals who have poured so much care, creativity, and dedication into their work—and into the people around them. It’s hard to put into words how much they’ve meant to our team and to me personally.”
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Lead gameplay programmer Sean Boocock said, “A rough day at Epic Games. I am ok but a 1000 of my wonderful colleagues are now looking for work. The team at Epic is the best I’ve ever worked with and every single one of the people impacted was a vital part of it.”
This is not the first time that Epic Games has cut so many roles in one swoop. Back in 2023, the company cut 830 roles. GameBaba Universe empathizes with those impacted and hopes they land on their feet soon.
