Long-time Fortnite developers are among those affected by sweeping cuts.
Epic Games, the developer of Fortnite, has announced that it is laying off more than 1,000 employees. The update came on Tuesday, 24 March, when CEO Tim Sweeney shared a company-wide message outlining the decision.
Fortnite
Release Date: 25 July, 2017
Platforms: MacOS, PC, PlayStation 4, PlayStation 5, Xbox One, Xbox Series X|S, Nintendo Switch, Nintendo Switch 2, iOS, Android
Developer: Epic Games
Why is Epic Games laying off staff in 2026?
Sweeney said the company is currently “spending significantly more than we're making”, pointing to a “downturn in Fortnite engagement” that began in 2025 as a key factor behind the cuts.
He confirmed that the layoffs, alongside over US$500 million in cost savings across contracting, marketing, and unfilled roles, are intended to bring Epic into “a more stable place”.
The CEO also cited broader industry pressures, including slower growth, weaker player spending, and tougher cost conditions. He noted that current console sales are trailing behind the previous generation, while games are increasingly competing with other forms of entertainment for players’ time.
Despite its continued global presence, Epic acknowledged internal challenges with maintaining consistency. Sweeney said the company has had “challenges delivering consistent Fortnite magic with every season”.
The announcement arrives just one week after the launch of Fortnite’s latest battle royale season, and follows a recent V-Bucks price increase that drew backlash from players. Sweeney added that Epic is still in the “early stages of returning to mobile and optimising Fortnite for the world's billions of smartphones”, signalling that expansion efforts are ongoing.
Are the Epic Games layoffs happening because of AI?
Sweeney addressed speculation around automation directly, stating that “the layoffs aren't related to AI”. He added that while productivity gains are welcome, Epic still aims to have “as many awesome developers developing great content and tech as we can”.
Epic Games developers affected by the layoffs
The job cuts also affect several high-profile and long-serving members of the Fortnite team. Among them is principal engineer Evan Kinney, who reacted publicly, saying that he was “confused and bewildered” after being “thrown out” following years of work on Fortnite and its live events.
Nik Blahunka, who was an Epic Games Lead Writer, was also affected by the layoffs. He has worked with Epic Games for over 10 years, contributing to both Battle Royale and Save the World.
Steve Danuser, former Narrative Director who was in charge of the Simpsons mini-season, Chapter Seven storyline, was also laid off, with fans on social media blowing up because he was specifically hired to bring the story back to Fortnite:
Plenty more high-profile employees were affected, as well as staff across multiple teams. Epic confirmed that impacted employees will receive severance packages that include at least four months of base pay, with additional compensation based on tenure.
The company will also extend healthcare coverage, including six months of paid coverage in the United States. It will also accelerate stock option vesting through January 2027, and allow extended equity exercise windows of up to two years. Sweeney described the layoffs as “very painful”, noting that Epic prides itself on hiring top talent, making the decision particularly difficult.
The news came alongside the announcement that three Fortnite modes, Rocket Racing, Ballistic, and Festival Battle Stage, are going offline.
Why are Fortnite modes Rocket Racing, Ballistic, and Festival Battle Stage going offline?
Epic Games is shutting down several Fortnite modes, saying that it “failed to build something awesome enough to attract and retain a large player base.”
Rocket Racing will leave Fortnite in October 2026, along with all UEFN islands using its templates. Rocket Racing Quests will end next week, and the current track template will be removed. Player Vehicle Lockers remain unaffected, and developers can move content to standalone islands or use new UEFN car tools coming in April.
Ballistic will be removed on 16 April 2026 with the 40.20 update. Players can still play and rank up until then. FPS creator islands and UEFN tools remain, though more features will be needed for future modes.
Festival Battle Stage, the competitive music mode, will also go offline on 16 April 2026, but Festival Main Stage and Jam Stage will continue, keeping music content available across Fortnite.
What is Epic Games doing after the layoffs?
Looking ahead, Epic plans to prioritise content and technology improvements. Sweeney said the company must “build awesome Fortnite experiences with fresh seasonal content, gameplay, story, and live events”.
He also highlighted plans to improve development tools, with Epic transitioning from Unreal Engine 5 and UEFN to Unreal Engine 6, alongside what he described as “huge launch plans towards the end of the year”.
Framing the situation as part of a longer trajectory, Sweeney referenced previous turning points for the company, including its shift to 3D with Unreal, console development with Gears of War, and the move into online games with Fortnite.
