Epic Games Cuts Jobs, Shuts Down Game Modes Amid Fortnite Decline

0:00On March 25th, Epic Games is cutting 1,000 jobs amid a drop in Fortnite player engagement that began in 2025. The company also plans to shut down three game modes, rocker racing this October and ballistic along with festival battle stage on April 16th. In a memo to staff, CEO Tim Sweeney explained that expenses are outpacing revenue, so they're implementing major reductions including over five. $100 million in savings from contracts, marketing, and some open positions. He pointed to broader industry issues like slower growth, reduced spending, weaker console sales, and competition from other entertainment options. Despite these moves, Epic reported $6 billion in revenue last year and received a $1.5 billion investment from Disney 2, years back to build out Fortnite with Disney characters. Sweeney compared the tough market to the 1990s when new tech like their own Unreal Engine shook things up, calling it a time of upheaval, but also big changes for survivors.

1:02Sweeney made clear the layoffs have nothing to do with AI, stressing they want to keep talented developers focused on creating top content as productivity tools evolve. These changes aim to steady the ship for Epic even as Fortnite remains a cash cow in a shifting gaming world.