Epic Games will lay off more than 1,000 employees and retire three newer Fortnite modes as the company responds to falling player engagement and rising operating costs, according to a company statement signed by founder and CEO Tim Sweeney.

The layoffs were announced in a note to staff posted on Epic's website and are attributed primarily to a "downturn in Fortnite engagement" that began in 2025 and has continued into 2026. Sweeney also cited broader industry headwinds such as slower growth and weak console sales, alongside challenges "unique to Epic," including the technical burden of delivering constant updates across console, PC and mobile platforms.

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Sweeney explicitly addressed the role of artificial intelligence in the decision, writing: "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."

The company confirmed that three Fortnite modes will be shut down. Ballistic and Festival Battle Stage (the PvP mode within Fortnite Festival) will go offline with Fortnite's 40.20 update on 16 April 2026. Rocket Racing will remain available until October 2026. Many of those affected by the job cuts are likely to have worked on these newer modes.

Epic also recently adjusted the pricing of V‑Bucks, the game's in‑app currency. The change reduces the amount of currency received for the same payment; 1,000 V‑Bucks previously cost roughly £7, while that payment now purchases 800 V‑Bucks. Epic stated that "the cost of running Fortnite has gone up a lot and we’re raising prices to help pay the bills," a move that drew visible player backlash online.

The company did not disclose a precise headcount beyond "over 1,000" affected staff or provide a full breakdown of which teams would be reduced. The statement framed the actions as necessary adjustments to align staffing and content with current engagement and financial realities.

Further details and the full company note are available via Epic's statement and reporting from Game Informer.

Source: Game Informer