Epic Games is cutting over 1,000 jobs due to a decrease in engagement for Fortnite, citing industry-wide issues including increased competition and reduced consumer spending. The layoffs follow a reduction of over 800 roles in 2023. The company's CEO, Tim Sweeney, stated that these layoffs are not related to AI and that over $500 million of identified cost savings in contracting, marketing, and closing some open roles will help them stabilise. For US-based workers, severance packages will include six months of paid healthcare.