Epic Games is laying off over 1000 employees due to a decline in Fortnite engagement, which has resulted in the company spending more than it's making. The layoffs represent around 25% of Epic's total workforce. The company is providing a relatively generous severance package, including 6 months of health insurance and at least 4 months of pay. The layoffs are seen as a significant blow to the company, which has been trying to compete with Steam in the digital game distribution market.