Ankara: Epic Games, renowned for its popular game Fortnite, is set to lay off more than 1,000 employees due to mounting market pressures and declining player engagement with its flagship title. This announcement comes as the company faces significant financial challenges.

According to Anadolu Agency, Epic Games CEO Tim Sweeney revealed the layoffs in a memo to staff, citing 'extreme' market pressures as the primary reason for the workforce reduction. Fortnite, which debuted in 2017 and is accessible on platforms such as Nintendo Switch and PlayStation, has witnessed a downturn in engagement since 2025. This decline has led to the company spending more than it is earning, necessitating substantial cuts to maintain financial stability.

Sweeney highlighted that the challenges faced by Epic Games are reflective of broader industry issues, including reduced consumer spending and a sluggish demand for new gaming consoles. He noted that the current generation of consoles is underperforming compared to previous generations, and games are vying for attention against other increasingly engaging forms of entertainment.

Despite the layoffs, Sweeney made it clear that artificial intelligence was not a factor in the decision. He emphasized the company's commitment to retaining talented developers to focus on creating strong content and technology, acknowledging that while AI can boost productivity, it was not a driving force behind the job cuts.

In an effort to stabilize the company, Epic Games has identified over $500 million in savings. Affected employees will be offered a severance package that includes at least four months of base pay and, for US-based staff, six months of health coverage.