Epic Games said on Tuesday it would lay off more than 1,000 employees as it cuts costs after a sharp fall in usage of its flagship game, Fortnite.

Chief Executive Tim Sweeney told employees the company had been spending "significantly more than we're making" since usage of the game began to decline in 2025.

He said the layoffs, along with more than $500 million in savings from cuts to contracting and marketing and from leaving roles unfilled, would reduce costs.