Epic Games is laying off more than 1,000 employees, and Fortnite is losing three modes at the same time: Rocket Racing, Ballistic, and Festival Battle Stage. CEO Tim Sweeney announced the layoffs today in a note to staff and blamed a drop in Fortnite engagement that started in 2025.
Why Epic is cutting jobs
"I'm sorry we're here again," Sweeney wrote in the note, which Epic also published on its website. He said the company is spending significantly more than it makes and has to make major cuts to stay funded. On top of the layoffs, Epic has found over $500 million in savings on contracting and marketing and by closing some open roles.
The "again" refers to September 2023, when Epic laid off around 830 people.
Some of the reasons Sweeney gives affect the whole industry: slower growth, weaker spending, current consoles selling less than the last generation, and games competing with other entertainment for players' time. Others are Epic's own. He admits Fortnite hasn't delivered "consistent Fortnite magic" every season, and its return to mobile is still in the early stages. He also states that the layoffs aren't related to AI.
Affected employees get a severance package that grows with tenure, plus extended Epic-paid healthcare.
Three Fortnite modes are shutting down
Epic announced the closures on its Fortnite Status account on X, admitting that in some cases it "failed to build something awesome enough" to keep a large player base. It's an unusually blunt line from a company this size.
Ballistic, the Valorant-style team shooter that has been in early access since 2024, goes offline on April 16.
Festival Battle Stage, the competitive mode of the rhythm game Fortnite Festival, also ends on April 16. Main Stage and Jam Stage are not affected.
Rocket Racing, the Rocket League spin-off that launched at the end of 2023 alongside LEGO Fortnite and Fortnite Festival, stays online until October 2026. All player-made islands built with its templates will be removed with it.
Cars that players customized in their Vehicle Locker are not affected and can still be used in Fortnite. According to PocketGamer.biz, Epic plans to add vehicle physics, hazards, and track-building tools to Unreal Editor for Fortnite, its creator toolset, starting in April, so creators can build their own racing maps without the Rocket Racing mode. The same report says Epic plans more updates for Festival Main Stage and Jam Stage.
Epic's plans for Fortnite
Sweeney says Epic will now focus on fresh seasonal content, gameplay, story, and live events for Fortnite, along with the move from Unreal Engine 5 to Unreal Engine 6. He also teased "huge launch plans" toward the end of the year. Staff will hear more about the roadmap at a company meeting on Thursday, March 26.
Hopefully the more than 1,000 people who lost their jobs today find good new roles soon and get the support they need along the way.
