In a shocking turn of events for the gaming industry, Epic Games has announced one of its biggest layoffs to date. Just a few days after the release of the new Fortnite Chapter 7 Season 2, CEO Tim Sweeney delivered an astonishing message to both employees and the wider community.
Essentially, he said the company is letting go of over 1,000 employees, citing a sustained downturn in Fortnite’s engagement and a widening gap between what Epic earns and what it spends. Alongside the layoffs, Epic is also taking down three Fortnite modes offline, leaving the community extremely saddened.
Three Fortnite Modes are being shut down
Following the news of the layoffs, Epic Games announced that it will take three Fortnite modes offline: Ballistic, Rocket Racing, and Festival Battle Stage.
Rocket Racing and Fortnite Festival Battle Stage were a part of the game’s ecosystem since Chapter 5, and although they didn’t rack up massive numbers, fans were still disappointed. Speaking of Ballistic, it was the game’s attempt at a tactical 5v5 shooter, and had a decent reception upon its launch. All three will be permanently removed from the Fortnite ecosystem very soon. Rocket Racing and all UEFN islands built with Rocket Racing templates are set to leave Fortnite in October 2026.
In the meantime, Fortnite Festival Battle Stage and Ballistic will go offline after the 40.20 update on April 16, 2026.
Why Epic Games is laying off over 1,000 employees
In an open letter addressed to Epic employees, Tim Sweeney explained that the downturn in Fortnite engagement that began in 2025 has left the company spending significantly more than it earns. He pointed to a combination of industry-wide challenges, which included slower growth, weaker consumer spending, and current-generation consoles underperforming compared to their predecessors. There were also other challenges unique to Epic Games, such as inconsistent seasonal quality in Fortnite, the early stages of a return to mobile, and the costs of being a vanguard company in a rapidly evolving industry.The layoffs are accompanied by over $500 million in identified cost savings across contracting, marketing, and the closure of open roles. Sweeney specified that these cuts are not related to AI, stating that to the extent AI improves productivity, the company wants to retain as many developers as possible.The announcement has sent shockwaves through the gaming world, and fans are worried about the industry’s future if businesses like Epic Games struggle. Affected employees will receive a severance package that includes at least four months of base pay plus additional compensation based on tenure.
