Epic Games, the Cary-based powerhouse behind Fortnite and the Unreal Engine, told employees Tuesday that it is cutting more than 1,000 jobs. The company said the move follows a slowdown in Fortnite engagement that began in 2025 and is part of a broader attempt to rein in costs and refocus what it builds.
Tim Sweeney's note
In a note posted on the company website, CEO Tim Sweeney told workers, "Today we're laying off over 1000 Epic employees," and linked the decision to the downturn in Fortnite engagement. Epic Games said it has already identified more than $500 million in savings from marketing, contracting and closing open roles. Sweeney also stressed that the layoffs "aren't related to AI" and described the changes as an effort to rebuild the company’s foundations rather than a pivot to automation.
Local reporting by Spectrum News says the reductions touch teams across the company. According to that report, affected employees will receive at least four months of base pay, while U.S. staff will also get six months of company-paid health coverage and accelerated stock-option vesting through January 2027. Spectrum also notes Epic’s view that slower growth and weaker consumer spending across the games business are adding pressure on top of Fortnite’s own slump.
Where this fits in the industry
This is not Epic’s first round of cuts. In 2023, Bloomberg reported that the company was cutting about 900 jobs, roughly 16% of its workforce, as it tried to bring spending back in line. The latest memo from Sweeney landed quickly in gaming circles. Gematsu republished the full note and laid out Epic’s explanation for why a company with one of the world’s most recognizable games is cutting so deeply again.
Local ripple effects
Epic is one of the Triangle’s largest private employers and owns the former Cary Towne Center site, where it once floated plans for a major new campus. Local coverage had already tracked a halt in that effort. Reporting on the rezoning bid withdrawn in January 2025 noted that Epic paused its rezoning application for the property, raising questions about its long-term footprint. Local leaders now warn that job cuts of this size could ripple through the Triangle’s economy, especially for vendors and contractors that depend on Epic work.
What comes next
Epic said it plans to hold a company meeting Thursday to walk employees through its roadmap. The company signaled that it will concentrate on Fortnite’s seasonal content, creator-focused tools such as UEFN and the long-term push toward Unreal Engine 6. Gematsu republished Sweeney’s memo in full as developers, employees and industry watchers look for clues about which teams and services will be scaled back and which will remain central to Epic’s plans.
