India, March 25 -- Epic Games on Tuesday confirmed it will lay off around 1,000 employees, citing a decline in engagement with its flagship online game, Fortnite.

In a note to staff, CEO Tim Sweeney apologised for the decision, saying the company had been spending significantly more than it earns due to a downturn in Fortnite engagement that began in 2025.

He noted that some challenges are industry-wide, including slower growth, weaker consumer spending, tougher cost structures, declining console sales compared to previous generations, and increased competition from other forms of entertainment.

He clarified that the layoffs are not related to artificial intelligence.

Reflecting on past challenges, Sweeney said Epic has successfully n...