Epic Games, the developer behind Fortnite and the Unreal Engine, has announced the layoff of more than 1,000 employees.

In a company-wide letter, CEO Tim Sweeney acknowledged the decision with the line, "I'm sorry we're here again," and blamed both "industry-wide challenges" and "challenges unique to Epic," including a reported downturn in Fortnite's popularity.

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The company said it has implemented more than $500m of cost reductions by cutting contracting, reducing marketing spend and closing open roles. Sweeney said these measures put the company "in a more stable place" going forward.

Sweeney, known for public advocacy of artificial intelligence research and tools, stated the layoffs "aren't related to AI." The company framed the changes as necessary to adjust to market conditions and internal priorities.

The announcement was first reported by Rock Paper Shotgun and was published alongside the company's letter to staff. Further details on the scope and geographic distribution of the job cuts were not provided in the initial statement.

More information is available in the original report: Rock Paper Shotgun.