Epic Games is conducting a major round of staff cuts. According to Jason Schreier, 1,000 employees will be laid off.
The layoffs come amid declining engagement with Fortnite. "We're spending significantly more than we're earning, and we need to make significant cuts to keep the company funded," the company stated in a blog post on Tuesday.
Epic Games said it will offer affected employees severance pay of at least four months.
This is the second major round of layoffs at Epic in three years. In September 2023, the company let go of 830 employees for similar reasons.
Last week, Epic raised the prices of Fortnite's in-game currency, writing in a blog post that "the cost of running Fortnite has grown significantly, and we're raising prices to help pay the bills."
Related: Scientists studied "post-game depression" and its emotional impact on gamers.