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Epic Games Lays Off 1,000 Employees After Fortnite Player Drop

Epic Games lays off 1,000 employees after Fortnite engagement drops, with CEO Tim Sweeney citing declining player activity and rising costs.

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Fortnite creator Epic Games has been hit with mass layoffs, with over 1,000 employees being impacted. According to CEO Tim Sweeney, the layoffs were the result of lower than expected Fortnite engagement since 2025.

Why Epic Games Laid Off 1,000 Employees Due to low Fortnite Engagement

Epic Games surprised many Fortnite players when they announced that over 1,000 employees were being let go from the company. In a post on X, the publisher explained that they were now spending “significantly” more on Fortnite than they are making back in profits. According to CEO Tim Sweeney, this was largely the result of lower player engagement in the battle royale.

In an official blog post, the Epic CEO also explained they were making over $500 million in additional cost-saving cuts in the form of reducing marketing and contracting. In his letter to employees, Sweeney clarified that the mass layoffs were not the result of AI, but were related to skyrocketing Fortnite costs.

“And some of our challenges are unique to Epic. Despite Fortnite remaining one of the most successful games in the world, we’ve had challenges delivering consistent Fortnite magic with every season.” The timing is noteworthy, as Fortnite Chapter 7 Season 2 just launched on March 19. Unfortunately, the layoffs have impacted some important members of the Fortnite development team.

Major Fortnite Engineer Laid Off While Working On Chapter 7 Season 2

No one ever wants layoffs to happen. That goes without saying. However, many battle royale fans were stunned when it was also announced that Principal Fortnite Engineer Evan Kinney was one of the employees let go. The developer has been a key figure in the game for years and was actively working on Fortnite Chapter 7 Season 2 when he was let go.

Kinney took to social media to reveal that he had been laid off. “I am genuinely so confused and bewildered. Like, I spent the past week debugging the rivalry system while recovering from pneumonia, and just in the past few days I’ve had multiple directors tell me how much they appreciate everything I do.”

The former Fortnite Engineer was also critical of the way he was let go. “I have done so much for this company and our games. So many late nights and weekends. So many live events, and competitive events, and new features, and new seasons. Solid performance reviews every time, with multiple people mentioning how critical I am and what an impact I make across multiple teams. Just to be thrown out. I don’t get it.”

Fortnite Player Count Drop Explained

While Epic Games didn’t specifically cite low Fortnite player count as the sole reason for the layoffs, Sweeney did mention lower than expected “engagement.” What that specifically means, is up to interpretation. Interestingly, the battle royale hit a peak of around 9 million active players during the Simpsons Fortnite season back in November 2025.

However, since then, the online multiplayer has hovered around 2.6 to 2.8 million peak players, according to FortniteGG’s status tracker. Of course, these are just estimated figures and might not be 100% accurate. Regardless, it appears that Epic is outspending the revenue it brings on Fortnite due to lower than expected engagement.

This also follows on the heels of the controversial Fortnite V-Bucks price increase, which was implemented at the start of Chapter 7 Season 2. Players now get 14% fewer V-Bucks upon purchase. Some users have complained that skins have also gotten too expensive. Regardless, the mass layoffs are sure to be more salt in the wound for fans of the battle royale.

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