Epic Games has announced layoffs affecting more than 1,000 employees due to financial challenges, with CEO Tim Sweeney stating the company is spending significantly more than it generates in revenue. This situation is linked to a decline in engagement with Fortnite, which has been ongoing since 2025. Sweeney noted broader industry trends, such as a downturn in console sales, and highlighted unique challenges faced by Epic, including difficulties in maintaining player engagement with Fortnite. The company has also been involved in legal disputes with Apple and Google, which have incurred significant costs. This round of layoffs follows a previous reduction in September 2023, where over 800 employees were let go for similar reasons. Following the layoffs, Epic will have just over 4,000 employees and has raised the price of Fortnite V-Bucks due to increased operational costs.