News Summary

Epic Games, the creator of Fortnite, is laying off over 1,000 employees due to a significant decline in player engagement and revenue. CEO Tim Sweeney explained that the downturn in Fortnite engagement, which started in 2025, has forced the company to make these cuts to stabilize financially. Epic’s strategy includes shifting focus toward Unreal Engine 6 and planning major launches for the end of 2026. Despite the layoffs, Sweeney assured that these decisions are not related to AI developments and emphasized the company’s commitment to retaining talented developers. Affected employees will receive severance packages, including extended healthcare coverage and accelerated stock option vesting for U.S. workers.