Epic Games Layoffs 2026: What’s Happening & Severance Rights in Canada

Epic Games, the video game developer behind Fortnite, is eliminating more than 1,000 jobs, or around 20% of its workforce.

“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. This layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place,” CEO Tim Sweeney said in a blog post on March 24, 2026.

“The folks impacted by the layoffs will receive a severance package that includes at least 4 months of base pay, with more based on tenure. We’re also extending Epic-paid healthcare coverage.”

Sweeney also clarified that the workforce reduction isn’t fuelled by artificial intelligence (AI).

• SEE ALSO: Epic Games Cuts 16% of Staff, Selling Certain Divisions

This page explains:

• What’s happening with layoffs at Epic Games
• Whether a layoff at Epic Games is permanent
• How much severance Canadian employees at Epic Games may be owed
• What to do before signing a severance offer

Is a Layoff at Epic Games Temporary or Permanent?

For non-unionized employees at Epic Games, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for Epic Games to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for Epic Games Staff

In Canada, non-unionized employees, including those at Epic Games, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, Epic Games employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and Epic Games Layoffs

A wrongful dismissal occurs when major employers, including Epic Games, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• Epic Games labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at Epic Games don’t reduce their legal obligations in Canada.

Laid Off at Epic Games? Next Steps

If you’ve been laid off at Epic Games:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

Epic Games Layoffs: Frequently Asked Questions

How much severance can employees at Epic Games receive?

Up to 24 months — depending on age, service, and position.

Are layoffs at Epic Games permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does Epic Games have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can Epic Games terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized staff at Epic Games?

No. Unionized employees at Epic Games must go through their union.

Lost Your Job? Get Help Now

If Epic Games has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.