Epic Games cuts over 1,000 jobs as Fortnite returns to Google Play Store

Epic Games has announced layoffs affecting more than 1,000 employees as part of a restructuring effort. The move come at a time when the company is also working to rebuild its mobile presence, with Fortnite returning to the Google Play Store. Also Read: Death Stranding 2 now available on PC: Price, download size, and features

Layoffs linked to Fortnite slowdown

The layoffs account for roughly 16% of Epic Games’ workforce, making it one of the larger job cuts in the gaming industry recently. The company has linked the decision to a slowdown in Fortnite’s growth. The game still has a large player base, but spending inside Fortnite has declined. This has started to impact revenue, especially as Epic continues to spend on new content and features. Also Read: Fortnite is returning to Google Play Store after years: Here’s when Android users can download

In a memo, Epic CEO Tim Sweeney said the company is currently spending more than it earns, which is why these cuts are being made. He also noted that Fortnite engagement has not returned to earlier levels and that market conditions remain difficult. Also Read: Meta planning big layoffs while investing billions in AI

Cost cutting and restructuring

Along with the layoffs, Epic is reducing spending in other areas as well. This includes cuts in marketing and external contracts. The company said it is aiming to save over $500 million through these measures.

The goal is to bring overall spending closer to what the company is earning. Epic has said the layoffs are not linked to AI replacing jobs, and that the technology is being used internally to improve productivity.

As part of changes around Fortnite, the company has also decided to shut down some newer game modes. Rocket Racing will continue for now, while Ballistic and Festival Battle Stage are expected to go offline in a future update.

Fortnite returns to Google Play Store

At the same time, Epic is focusing on rebuilding its mobile strategy. Fortnite has returned to the Google Play Store, marking an end to a long-running dispute between Epic and Google over app store policies and payments.

The return is part of Epic’s effort to reach a wider mobile audience again, especially as smartphones remain a key platform for gaming. The company has said it is still in the early stages of rebuilding its mobile presence.

Support for affected employees

Epic has confirmed that affected employees will receive four months of severance pay. Additional compensation will depend on how long they have been with the company. For employees in the US, healthcare coverage will continue for up to six months.

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The layoffs come at a time when other gaming companies are also cutting costs and slowing down hiring, as growth across the industry has eased compared to previous years.