Epic Games is reducing its workforce by more than 1,000 employees, representing roughly 20 percent of the company. The layoffs follow a decline in player engagement with “Fortnite” and come as the video game industry faces broader economic challenges.
This marks the second round of layoffs at Epic Games in recent years, linked to difficulties with its popular online game. Company leadership cites slower economic growth and decreased consumer spending as primary factors driving the cuts, clarifying they are not related to advancements in artificial intelligence.
To address financial pressures, Epic Games has also increased the price of V-Bucks, the in-game currency used within “Fortnite”. CEO Tim Sweeney described current market conditions as “the most extreme” experienced in years.
The company is implementing these measures to save money and navigate ongoing industry and internal challenges.