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Video Games: Epic Games to Lay Off 1,000 Amid ‘Fortnite’ Popularity Decline
The American video game publisher announced it would eliminate 1,000 positions, citing decreased player engagement with its flagship title.
“Fortnite” was banned from Apple’s App Store for nearly five years before returning in May 2025, following a lengthy legal battle that Epic Games ultimately won.
AFPEpic Games founder and CEO Tim Sweeney announced the layoff of more than 1,000 employees on Tuesday, attributing the cuts to declining popularity of the company’s signature game, “Fortnite.” The company did not respond to an AFP inquiry regarding its total headcount, but in autumn 2023 reported approximately 4,400 employees.
“Fortnite’s player base began to decline in 2025, resulting in current expenditures significantly exceeding revenue,” Sweeney wrote in a message posted on the company’s website. “To ensure the company remains viable, we must make significant cost reductions.” The game, launched in 2017, has too been impacted by legal disputes with major smartphone platform holders, Apple and Google.
Removed from the App Store
Epic Games accused Apple and Google of requiring developers to go through their app stores, which take a substantial percentage of revenue. “Fortnite” was prohibited from Apple’s App Store for nearly five years before its return in May 2025, following a protracted legal proceeding in which Epic Games prevailed.
The game was absent from the Google Play Store for almost six years before being reinstated on March 19, also after a lengthy court battle.
$500 Million in Savings
“We’ve taken many hits during a battle that is only just beginning to pay off for us and for all developers,” Sweeney explained. He added that the company is also facing a broader industry trend of “slower growth, reduced player spending, and tough-to-manage costs.”
In addition to the layoffs, Epic Games plans to realize $500 million in full-year savings by reducing marketing expenses and outsourcing.
“Like everyone else these days, I want to emphasize that these job cuts are not related to AI (artificial intelligence),” the company’s CEO assured, noting that Epic Games now operates its own gaming platform, open to titles it does not produce itself. The move underscores the evolving landscape of the gaming industry, where developers are increasingly seeking greater control over distribution and revenue streams.
(afp)
