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Epic Games Lays Off 1000, Closes Rocket Racing & Other Fortnite Experiences Because Of Downturn In Engagement

March 25, 2026 by Ryan Parreno

This genuinely raises questions about live service.

Epic Games has announced massive layoffs today.

They made this memo public:

Today we’re laying off over 1000 Epic employees. I’m sorry we’re here again.

The downturn in Fortnite engagement that started in 2025 means we’re spending significantly more than we’re making, and we have to make major cuts to keep the company funded.

Epic cited many of the issues Matthew Ball cited in his latest report as reasons for their downturn. This includes lower sales of current consoles versus last generation, and games losing out to other hobbies.

They also explained Fortnite’s unique challenges, including the fact that they’ve just returned to iOS and Android and have not capitalized on it yet.

In a separate announcement, Epic Games also revealed they’re shutting down Fortnite Experiences Rocket Racing, Ballistic, and Festival Battle Stage. It’s a harsh lesson, after Tim Sweeney announced plans to make Fortnite a metaverse platform of experiences two years ago.

Epic announced they’re raising prices for V-Bucks two weeks ago. As sad as it is, we could have seen these layoffs coming. We wish the best for the employees set to leave Epic Games and Fortnite.

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