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Layoffs

Ongoing coverage on Layoffs.

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IGNVery negative

Fewer People Playing Fortnite Is Just One of Epic's Many Problems, Analysts Say

Industry analysts suggest that cost-reduction measures at Epic Games, including recent layoffs, were an expected outcome due to mounting external pressures and significant industry expenditures. The decline in Fortnite's player base is cited as one contributing factor to these financial challenges.

Tech RadarVery negative

Sony has shut down Dark Outlaw Games one year after its founding and while it was reportedly 'still in the early…

Sony has shut down Dark Outlaw Games, a studio founded just one year ago by Call of Duty Zombies veteran Jason Blundell. The closure comes amid broader cuts in mobile development and other areas, with around 50 people reportedly laid off. Sony Interactive Entertainment CEO Hermen Hulst cited rising development costs as a factor in the studio's shuttering.

Retro GamerNegative

Fortnite producer says "we cannot even fully understand what kind of impacts this will have" amid mass layoffs at Epic Games: "What comes next is very hard and painful"

Epic Games producer Robby Williams shared his devastation following mass layoffs at the company, which CEO Tim Sweeney attributed to a downturn in Fortnite engagement. Williams expressed concern about the future impact on the game and the remaining staff, acknowledging the difficult path ahead for the development team.

Gaming BoltNegative

AAA Game Development Budgets in US, Canada Have Reportedly Started Exceeding $300 Million

AAA game development budgets in the US and Canada are reportedly exceeding $300 million, sometimes significantly more, contributing to industry struggles like layoffs and studio closures. Former PlayStation executive Shuhei Yoshida noted that development costs have doubled between the PlayStation 4 and PlayStation 5 generations, making it difficult to recoup investments. While blockbuster titles face massive budgets, smaller games like Clair Obscur: Expedition 33 can be made for under $10 million by focusing on core gameplay.

Checkpoint GamingVery negative

Epic Games lays off over 1000 employees, blames declining interest in Fortnite

Epic Games has laid off over 1000 employees, citing a significant downturn in Fortnite engagement and financial losses. CEO Tim Sweeney stated that the company is spending more than it earns, necessitating these cuts and other cost-saving measures. Concurrently, Epic announced the shutdown of several Fortnite modes, including Rocket Racing and Festival Battle Stage, due to a failure to attract and retain a large player base.

PC GamerNegative

Fortnite producer asks for patience as developers 'pick up the pieces' after massive layoffs: 'We cannot even fully understand what kind of impacts this will have on the game for the rest of the year and likely beyond'

Epic Games producer Robby Williams has asked the Fortnite community for patience following massive layoffs that impacted over 1,000 employees. CEO Tim Sweeney cited challenges in consistently delivering "Fortnite magic" as a reason for the cuts. The full impact of the layoffs on the game's development for the rest of the year remains uncertain.

Retro GamerNegative

Epic Games CEO Tim Sweeney says latest layoffs will result in "a stream of resumes of once-in-a-lifetime quality folks" because the downsizing "wasn't a performance-based 'rightsizing'"

Epic Games CEO Tim Sweeney stated that the recent layoffs of over 1,000 employees were not performance-based and that the departing staff are highly skilled. He encouraged employers to look out for resumes from these individuals, attributing the downsizing to a downturn in Fortnite engagement and industry-wide challenges. The layoffs also led to the discontinuation of three Fortnite game modes.

Metro UKNegative

Fortnite dev warns of 'hard and painful' changes after Epic Games layoffs

Epic Games has laid off 1,000 employees, following a previous reduction of 870 staff in 2023, citing concerns over Fortnite's profitability. Developers have expressed concern about "hard and painful" changes ahead for the game, including the shutdown of three gameplay modes. The company has also increased the price of its in-game currency, V-Bucks.

EngadgetVery negative

Meta lays off hundreds of workers, including more from Reality Labs

Meta has laid off hundreds of employees, with a significant number from its Reality Labs division, which focuses on VR and the metaverse. These cuts come amid substantial investments in AI infrastructure and a reported workforce reduction plan. Several executives are also set to receive large, performance-tied compensation packages.

Massively OverpoweredNegative

Fortnite dev admits the team ‘cannot fully understand’ how Epic’s layoffs will impact the shooter

Epic Games gameplay producer Robby Williams expressed devastation and uncertainty following the company's announcement of 1,000 layoffs, attributed to underperformance of the Epic Games Store and Fortnite. Williams acknowledged that remaining developers cannot fully comprehend the long-term impact on the game's development and content for the year ahead.

Gamedeveloper.comNegative

Fortnite Rocket Racing and more are being sunsetted amidst layoffs

Epic Games is shutting down several Fortnite modes, including Rocket Racing, Ballistic, and Festival Battle Stage, amidst significant layoffs affecting over 1,000 employees. The company is also discontinuing downloads for the original Horizon Chase and Horizon Chase Turbo. Epic Games CEO Tim Sweeney stated the company is rebuilding its foundations to navigate industry upheaval and focus on seasonal content for Fortnite and future Unreal Engine development.

Gamedeveloper.comVery negative

Epic Games layoffs serve as a timely reminder that accountability is dead

Epic Games has announced layoffs affecting over 1,000 employees, despite Fortnite remaining a highly successful live service game. The company also secured a $1.5 billion investment from Disney for a new entertainment universe. The layoffs have raised questions about accountability within the company, particularly concerning its acquisitions of Harmonix and Mediatonic.

PC GamerNegative

Epic CEO Tim Sweeney says 'employers will see a stream of resumes of once-in-a-lifetime quality' after the company laid off more than 1,000 people

Epic Games CEO Tim Sweeney announced that the company has laid off over 1,000 employees and cut significant costs, stating that the company is still spending more than it earns. Sweeney noted that the layoffs were not performance-based and that affected employees represent top talent. The company cited a downturn in Fortnite engagement and lower sales of current-generation consoles as reasons for the financial struggles.

Rock Paper ShotgunVery negative

Fortnite producer says Epic's mass layoffs will impact the game in ways the remaining teams "cannot even fully understand"

A Fortnite producer has stated that Epic Games' recent mass layoffs will have an impact on the game that remaining teams cannot fully comprehend. CEO Tim Sweeney attributed the job cuts to a downturn in Fortnite's popularity and industry-wide challenges, while also announcing the shutdown of three Fortnite modes: Rocket Racing, Ballistic, and Festival Battle Stage.

EurogamerNegative

Sony shuts down Dark Outlaw Games and downsizes mobile games development as PlayStation continues to rethink plans

Sony Interactive Entertainment has shut down its newly formed studio Dark Outlaw Games and is downsizing its mobile game development division, affecting around 50 workers. This move signals a potential shift away from the mobile market and a return to focusing on large exclusive releases, possibly impacting the company's PC strategy.

Gamedeveloper.comVery negative

Sony shutters internal studio Dark Outlaw Games

Sony Interactive Entertainment has shut down its internal studio Dark Outlaw Games, founded by Jason Blundell in 2024. The closure resulted in approximately 50 layoffs across the studio and PlayStation's mobile business. This follows the recent closure of Bluepoint Games in February.

Games IndustryNegative

Sony closes first-party studio Dark Outlaw Games

Sony Interactive Entertainment has shut down its first-party studio Dark Outlaw Games, founded by industry veteran Jason Blundell. The company cited strategic adjustments for long-term sustainability, which included workforce reductions. Separately, Epic Games announced layoffs of over 1,000 employees due to a downturn in Fortnite engagement and broader industry challenges.

GamespotNegative

Fortnite Layoffs Included Artist Who Designed Jonesy, The Face Of The Game

Epic Games has conducted layoffs affecting approximately 1,000 employees, including the character artist who designed Fortnite's iconic character Jonesy. The company cited a downturn in engagement since 2025 and a need for cost savings, leading to a $500 million plan that includes scaling back projects like Rocket Racing and Fortnite Festival. Affected employees will receive severance pay and extended healthcare coverage.

Blues NewsNegative

Three Fortnite Modes Ending

Epic Games is discontinuing support for several game modes within Fortnite due to a lack of establishment. This decision follows recent news of over 1000 layoffs at the company, indicating a strategic shift in development focus.

Blues NewsVery negative

Quoteworthy

An analyst suggests that recent layoffs in the gaming industry, even affecting major titles like Fortnite, indicate a worrying trend for the sector. The analyst questions the future prospects of other games if a popular title like Fortnite is experiencing such difficulties.