PANews reported on March 25th that Epic Games announced on Tuesday that it will lay off more than 1,000 employees. CEO Tim Sweeney stated that due to declining user activity for Fortnite starting in 2025, the company's expenses far exceeded its revenue, necessitating large-scale layoffs and cost reductions exceeding $500 million to achieve financial stability. These layoffs are unrelated to AI. Affected employees will receive at least four months' basic salary as severance pay, increasing based on seniority, along with extended health insurance and stock option vesting periods.

Sweeney pointed out that some of the challenges stem from the overall slowdown in industry growth, weak spending, and rising cost pressures, as well as Epic's own shortcomings in areas such as the stability of Fortnite's seasonal content and mobile optimization. The company plans to revitalize its business by creating a better gaming experience, accelerating development tool upgrades, and launching its next-generation platform by the end of the year.