Fortnite lays off 1,000 employees after spending billions fighting Apple and Google

Epic just announced that 1,000 employees have been laid off, with CEO Tim Sweeney stating that it was due to a "downtime in Fortnite engagement." Meanwhile, Sweeney had spent over $1 billion trying to get Fortnite back on iPhones and Android devices. 

Back in 2024, Sweeney stated: "If we spent a billion dollars so far, that's a small price to pay for the future freedom of our company and of all the others who want to participate in the market." 

Gamers frustrated with Tim Sweeney after 1,000 employees laid off

The recent layoffs have shocked the gaming and esports communities. Apparently, user engagement and spending has been down in the famous battle royale, causing Epic to panic. 

"This layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place," Sweeney stated earlier this morning. 

However, seeing so many people let go from Epic has led to a lot of accusations across the internet. Many have blamed Sweeney for the massive layoffs, questioning his various choices over the years. This includes constant collaborations, a focus on an unpopular metaverse concept, and fighting to get Fortnite back on mobile devices. 

The expensive legal battles do feel frivolous now that so many employees paid the price. And Sweeney's claim that it's due to "future freedom" does make it seem even more ridiculous. I think the real reason for the billion-dollar battle, however, is wanting more in-game transactions. 

With Fortnite struggling to make money as the economy sinks and spending goes down, I think Epic saw mobile gamers as a likely source of income. Most mobile games are riddled with microtransactions. Fortnite was no different. 

Before being removed from the app stores in 2020, Fortnite Mobile made over $1 billion in just two years. This was largely from the Apple App Store, with American players buying tons of cosmetics. At its peak, the game was making 2 million a day on iPhones. 

When Fortnite returned to Apple devices in December 2025, it made $2.79 million. It also recently returned to Google Play Store. This clearly wasn't enough. 

Circana Analyst Mat Piscatella stated: "The big live-service behemoths (including Fortnite) take up significant player count and time-share on the consoles. The top 10 live-service games on PlayStation and Xbox comprise nearly half of all US gaming hours on the platforms every month.

"And of course, this raises the question of if Fortnite can't make it, what chance do other games have? I do not have a good answer to that question. Heck, I don't even have a bad answer."