CARY, N.C. (WBTV) – A North Carolina-based company that makes one of the world’s most popular video games planned to lay off more than 1,000 employees, according to a memo.
Epic Games CEO Tim Sweeney sent a memo to employees on Tuesday, March 24, which confirmed the layoffs.
The company based in Cary, N.C. is behind the game “Fortnite,” which was first released in 2017 and rose to widespread international popularity in the late 2010s and early 2020s.
Sweeney attributed the layoffs in part to the falloff in Fortnite engagement.
“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,” his memo said in part.
The CEO said some of the challenges Epic Games is facing are industry-wide. He mentioned slower growth, weaker spending, and lower sales of new gaming consoles as examples of those industry challenges.
Sweeney did say in the memo that the layoffs were not related to the rise of artificial intelligence.
“At Epic, we pride ourselves in only hiring the industry’s best, so it is very painful to part with so many talented people,” he wrote.
Epic Games’ website says the company has dozens of offices around the world. It was not exactly clear where all the laid-off employees worked, but North Carolina records did show 211 of the affected workers were at the Cary office.
Sweeney said in the memo that employees affected by the layoffs would get severance packages that include at least four months of base pay, along with Epic-paid health care coverage.
The game-maker’s website said the company has been around since 1991, and is a leading interactive entertainment company and provider of 3D engine technology.
Also Read: Construction underway on first Buc-ee’s in North Carolina: Here’s when it will open
Copyright 2026 WBTV. All rights reserved.