New updates have been reported about Epic Games.
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Epic Games is executing a major restructuring, cutting 1,000 jobs after a sustained drop in Fortnite engagement since 2025 left the company spending significantly more than it earns, according to a memo from CEO Tim Sweeney. Management expects the layoffs, combined with more than $500 million in cost reductions across contracting, marketing, and unfilled roles, to place the business on a more sustainable financial footing.
As part of the push to offset higher operating costs, Epic recently raised prices for V-Bucks, the in-game currency used in Fortnite, citing a substantial increase in the cost of running the title. Sweeney stressed that the workforce reduction is not driven by AI replacing developers but acknowledged broader industry pressures, including RAM shortages and elevated chip demand that may be weighing on consumer spending; affected employees will receive four months of severance pay, with enhanced packages for longer tenures, and Epic will continue U.S. healthcare coverage for six months, signaling an effort to manage reputational and talent risks while rebalancing its cost structure.