Epic Games, the creator of Fortnite, has laid off 82 employees at its Bellevue, Washington, office. This local reduction is part of a much larger corporate restructuring announced on Tuesday, in which the company is cutting approximately 1,000 positions—roughly 20% of its total workforce.
In a memo to staff, CEO Tim Sweeney explained that the company has been spending more than it earns, largely due to a decline in Fortnite engagement that began in 2025. Sweeney pointed to several industry-wide factors contributing to the decision, including:
- A general slowdown in the gaming market.
- Reduced consumer spending and tougher economic conditions.
- Lower-than-expected sales for current-generation consoles.
- Increased competition for users’ time from other digital entertainment platforms.
The layoffs, which are not related to artificial intelligence, are expected to help the company save over $500 million when combined with other cost-cutting measures, such as reduced spending on marketing and contractors. Epic has stated that impacted employees will receive at least four months of severance pay and extended healthcare benefits.
The Seattle-area office, located in Bellevue’s Lincoln Square, has been a key hub for Epic for over a decade. Even after these cuts, the company maintains a significant presence in the region, where it previously employed nearly 350 people. This marks the second major round of layoffs for the company in recent years, following a cut of 830 employees in 2023.