Fortnite Faces Downturn: Over 1,000 Employees Laid Off by Epic Games

Epic Games, the developer behind Fortnite, one of the world’s most popular live-service games, has announced significant layoffs affecting over 1,000 employees globally. This decision was accompanied by a detailed memo from the company, explaining the reasons behind this unfortunate development for many of its workforce.

Understanding the Layoffs at Epic Games

In an official communication, Epic Games CEO Tim Sweeney cited a decline in Fortnite’s popularity, which reportedly began in 2025, as a primary reason for the layoffs. Sweeney also pointed to the slower-than-anticipated adoption of the current generation of gaming consoles and the increasing competition for audience attention as contributing factors.

The struggle for player engagement is particularly critical. As noted by analyst Matthew Ball in February 2026, even a titan like Fortnite is losing ground to various other forms of digital entertainment. These include:

• Popular platforms like Roblox
• Short-form video content on TikTok
• Emerging interests such as cryptocurrency investments and prediction markets
• Engagement with adult-oriented content

This fragmentation of attention poses a significant challenge for long-standing gaming titles.

Sweeney further acknowledged a perceived lack of “magic” in recent Fortnite seasons, hinting at a creative stagnation or a struggle to maintain player excitement. He, however, explicitly denied any link between the layoffs and the rise of generative artificial intelligence.

Impact on Fortnite’s Game Modes and Development

Discontinuation of Specific Fortnite Game Modes

In conjunction with the layoff announcement, Epic Games also revealed the discontinuation of three distinct game modes within Fortnite. These include:

• Rocket Racing: A racing mode introduced in late 2023.
• Ballistic: A mode designed as an alternative to tactical shooters like Counter-Strike 2.
• Fortnite Festival: Battle Stage: A competitive version of the rhythm game experience, reminiscent of titles like Guitar Hero.

Concerns have also been raised regarding the potential impact on the quality of Fortnite’s core modes. Among the more than 1,000 employees let go are key figures vital to the game’s long-term development. Notably, Evan Kinney, a veteran bug-fixing specialist who had been with the game since its inception in 2017, was laid off. Additionally, Vitaliy Naymushin, credited with creating the iconic Fortnite character Jonesy, also announced his departure. The loss of such experienced talent could pose significant challenges for future game updates and maintenance.

Globally, affected employees are expected to receive severance packages equivalent to up to six months’ salary, with the exact amount dependent on their tenure with the company.

Source: Epic Games. Opening photo: Fortnite Press Materials