Epic Games has announced a significant reduction in its workforce, laying off 1,000 employees in a move described by CEO Tim Sweeney as necessary to address the company's financial stability. The layoffs have impacted various divisions, most notably resulting in the departure of Vitaliy Naymushin, the director of character art who was instrumental in creating the visual identity of Fortnite.
Key Departures and Legacy
Naymushin, who spent over 11 years at Epic Games, confirmed his departure via LinkedIn. He was the creative force behind the majority of Fortnite's original character cast, including the recognizable Jonesy, Ramirez, and Penny. His tenure at the studio saw him rise to the director level, where he oversaw art direction for 15 seasons of the game.
Before his time at Epic, Naymushin contributed to major titles at id Software and Blizzard Entertainment. His professional history includes work on Rage, the canceled Titan project, Diablo 3, and Overwatch.
Financial Restructuring
In a memo addressing the layoffs, Tim Sweeney admitted that the company is currently spending significantly more than it is earning. He noted that Fortnite has seen a downturn in engagement since 2025. To combat these financial challenges, Epic is implementing a $500 million cost-savings initiative. This plan involves reducing contract work, cutting marketing budgets, and closing open positions.
The restructuring also affects the studio's project portfolio. Epic will be shutting down or scaling back several endeavors, including Rocket Racing, Ballistic, and Festival Battle Stage. Additionally, the price of the in-game currency V-Bucks has been raised to assist with operating costs.
Support for Affected Staff
Employees impacted by the decision will receive a minimum of four months of severance pay. In the United States, healthcare coverage will be extended for six months. Following these cuts, Epic Games will retain a workforce of approximately 4,000 employees.
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