‘Fortnite' maker Epic Games layoffs impacted dozens of Bay Area jobs

Epic Games' recent layoffs reached the Bay Area, including remote workers in San Francisco, according to newly filed state notices detailing the California impact of cuts the company disclosed last month.

Filings from Thursday show the "Fortnite" maker reported permanent layoffs affecting 16 employees in Marin County and 28 San Francisco-based remote workers. They also list 28 layoffs in San Diego County, along with 61 remote employees in Los Angeles and two in El Segundo. All list an effective date of March 27, according to the California Employment Development Department.

Epic Games, founded in 1991, is the company behind the hit game "Fortnite," one of the most popular titles in the world. It also develops Unreal Engine, widely used software for video games, film and other digital media.

The notices offer the clearest breakdown yet of how Epic's job cuts were distributed in California after the company said in March it would lay off more than 1,000 employees globally.

In a March 24 memo to employees, CEO Tim Sweeney wrote, "I'm sorry we're here again."

Sweeney said the cuts were driven by a decline in engagement with "Fortnite," the company's flagship game.

"The downturn in Fortnite engagement that started in 2025 means we're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he wrote.

He said the layoffs, along with "over $500 million of identified cost savings in contracting, marketing, and closing some open roles," would put the company "in a more stable place."

Sweeney also pointed to broader industry pressures, including "slower growth, weaker spending, and tougher cost economics," while acknowledging company-specific challenges.

"Despite Fortnite remaining one of the most successful games in the world, we've had challenges delivering consistent Fortnite magic with every season," he wrote.

He added, "Since it's a thing now, I should note that the layoffs aren't related to AI."

According to the memo, affected workers will receive at least four months of base pay, along with extended health coverage and accelerated stock vesting.

Epic previously laid off 830 workers in 2023 and sold Bandcamp, the Oakland-based music distributor, less than two years after acquiring it.

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This story was originally published April 28, 2026 at 7:05 PM.