The Digester

Epic Games is eliminating 1,000 roles to reduce costs after a drop in Fortnite engagement, while implementing over $500 million in savings, offering severance and six months of U.S. health coverage, and raising V-Bucks prices.

Epic Games is cutting 1,000 jobs after Fortnite engagement declined starting in 2025.
CEO Tim Sweeney said the company is spending significantly more than it is making and identified over $500 million in cost savings.
Laid-off employees will receive four months of severance, with additional pay for longer tenures.
Epic will continue U.S. employee health coverage for six months after the layoffs.
Epic raised V-Bucks prices last week, citing higher Fortnite operating costs.
Sweeney said AI did not directly cause the cuts but noted industry chip and RAM shortages and weaker consumer spending as indirect headwinds.

Epic Games lays off 1,000 as Fortnite engagement falls

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