The post ‘Fortnite’ Maker Epic Games Reveals Mass Layoffs, Says AI Isn’t to Blame appeared on BitcoinEthereumNews.com.

In brief Epic Games said it will lay off more than 1,000 employees. CEO Tim Sweeney said the cuts “aren’t related to AI.” The company cited declining Fortnite engagement and broader industry slowdown as factors behind the cuts. Epic Games announced on Tuesday that it will lay off more than 1,000 employees, and CEO Tim Sweeney addressed the technological elephant in the room: artificial intelligence. “Since it’s a thing now, I should note that the layoffs aren’t related to AI,” Sweeney wrote in a memo to staff that was also posted publicly. “To the extent it improves productivity, we want to have as many awesome developers developing great content and tech as we can.” Launched in 2017, the popular battle royale shooter, Fortnite, reportedly had over 650 million registered players worldwide in 2025. In the memo, however, Sweeney said a decline in Fortnite engagement that began in 2025 left Epic spending “significantly more than we’re making,” forcing the company to make major cuts to keep the business afloat. While Sweeney did not elaborate on the reason for mentioning AI, one reason may lie in the company’s embrace of the technology. In 2023, Epic Games found itself at odds with Valve, the creator of Steam, over the use of generative AI in games, with the Fortnite maker allowing games developed using the technology on its Epic Games Store marketplace.  The layoffs, the company said, are part of a broader cost-cutting effort, with over $500 million additionally saved by reducing contracting, cutting marketing spending, and leaving some roles unfilled. Sweeney compared the moment to earlier moments in the company’s history, including its shift from 2D to 3D games in the 1990s and later move into online titles such as Fortnite. “Market conditions today are the most extreme we’ve seen since those…

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Filed under: News - @ March 24, 2026 7:28 pm