Video game publisher Epic Games is laying off 1,000 workers, citing a drop in engagement with its signature title, Fortnite.
In a memo to employees (read it in full below), CEO Tim Sweeney noted that the cuts are “unrelated to AI.” He said the layoffs will be paired with $500 million in cost savings from contracting marketing and “closing some open roles.”
Sweeney said the moves are being prompted by simple mathematics. “We’re spending more than we’re making, and we have to make major cuts to keep the company funded,” he wrote.
Epic, which is privately held, became the envy of the media landscape when Fortnite launched in 2017. The game was popular unto itself but also relied on a newer revenue model, with “skins,” weapons and other add-ons paid for by players as they accessed the game itself for free, the opposite of the traditional console
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