Epic Games CEO Confirms ‘Huge Pivot’ to Retool Teams for AI

What happened

Sweeney wrote that the aim of the shift is not to perform the same work with fewer people, but to enable everyone at Epic to build more and better things, and to bring the benefits to all teams using Unreal. He cited a downturn in Fortnite engagement that began in 2025 and said Epic was spending significantly more than it was earning.

Epic’s 2025 Loci Acquisition Epic had already added AI capability through acquisition (one company buying another). Epic Games founder and CEO Tim Sweeney said on October 12, 2026 that the company has a company-wide reorganization underway aimed at artificial intelligence. Epic Games is a video game company based in North Carolina.

The confirmation followed an October 7, 2026 post in which Sweeney said seller revenue on Fab, Epic’s marketplace for 3D assets, increased significantly in September. He attributed the rise to AI acceleration, writing that it has produced more demand for content and that many developers are using AI assistants to build scenes while buying building blocks from Fab. March Layoffs and Epic’s Stated Position on AI In a March 24, 2026 note to employees published on Epic’s website, Sweeney said the company was laying off more than 1,000 employees.