In a note sent to employees, Tim Sweeney, CEO of Epic Games, announced that the company would be making 1,000 immediate layoffs. In the letter, he explained that the decline of Fortnite in 2025 put the company in a more unstable financial situation, and that these layoffs aim to save around $500 million and improve long-term stability.
How Big Is This?
According to Statista, Epic Games had an estimated 4,600 employees in 2026. This means the layoffs could represent over 20% of the workforce. These numbers are estimates, as the company does not officially disclose them.
Epic Games is a private company and is not listed on the stock market, which means it is not required to disclose its revenue or financial statements. However, the company occasionally shares selected figures. For example, in a recent update about the Epic Games Store, it stated: "Player spending on third-party PC games grew 57%, reaching an all-time record of $400 million."
A Business Built on One Game
Looking at older data, Statista reported that in 2019, Epic Games generated about $4.086 billion in total revenue, with $3.81 billion coming from games — representing roughly 93% of total revenue. Since Fortnite is by far the company's most well-known and successful game, this highlights how dependent Epic Games is on it.
More recent engagement trends also help explain the layoffs. Fortnite has seen a decline since 2025. According to Ampere Analysis, "Since its peak in 2023, Fortnite's annual peak MAUs across PlayStation and Xbox have decreased by 28%." This figure does not even include PC players, which could make the decline even more significant.
All of this provides a clear explanation for the layoffs: a heavy reliance on a single game combined with declining engagement.
One Final Note
Tim Sweeney clarified in his message: "Since it's a thing now, I should note that the layoffs aren't related to AI."
Overall, this situation shows that even major players in the gaming industry are not immune to market shifts, especially when their business model relies heavily on one core product.