Disney Partnership With Epic Games to Continue Despite Layoffs at Latter

Bram Lybeert

Published:

Disney Partnership With Epic Games to Continue Despite Layoffs at Latter

After Epic Games announced that it is laying off 1,000 employees as part of a new cost-saving measure, the president of the company restated their commitment to the deal.

Epic Games alerted employees today that 1000 people would be laid off as part of a $500 million cost-saving strategy. The release from CEO Tim Sweeney points to a "downturn in Fortnite engagement" as part of the reason the company is spending more than it's making. It also explained that some of the issues the company is facing are an industry-wide phenomenon in areas such as cost economics and consoles selling less than previous iterations.

Epic Games alerted employees that 1,000 people would be laid off as part of a $500 million cost-saving strategy “to keep the company funded.” This strategy also includes “cost savings in contracting, marketing, and closing some open roles, which puts us in a more stable place.”

“We’re committed to building a games and entertainment universe with Disney,” the president of Epic Games, Adam Sussman, spoke to TheWrap. “The vision is unchanged, and we are excited by our progress.”

Disney and Epic Games Partnership

Just last week, we reported that the restructuring and expansion of Disney Entertainment would include the current partnership with Epic Games. Under the leadership of incoming president and chief creative officer Dana Walden, the partnership is shifting from Experiences to the Entertainment division.

Just last week, we reported that the restructuring and expansion of Disney Entertainment would include the current partnership with Epic Games. Under the leadership of incoming president and chief creative officer Dana Walden, the partnership is shifting from Experiences to the Entertainment division.

Before, Disney Games fell under the purview of Disney Parks & Experiences, the division headed by incoming CEO Josh D’Amaro. Sean Shoptaw, Executive Vice President of Games and Digital Entertainment, is instrumental in Disney’s ongoing collaboration with Epic Games, the developers of Fortnite. The partnership has proved especially fruitful, Shoptaw citing the storytelling potential of Fortnite as a key avenue to connect with younger audiences during a SXSW 2026 panel.

Disney and Fortnite

Disneyland Game Rush in Fortnite

Disney has had several successful content rollouts within Fortnite since the partnership was announced in February 2024. At SXSW in 2025, Disney suggested that their universe in Fortnite may connect to the guest experience at Disney Parks. They’ve come close: Disneyland Game Rush introduced several minigames themed to park attractions in celebration of Disneyland’s 70th anniversary, with themed challenges and cosmetic rewards.

Percy Jackson: Siege of Monsters island in Fortnite

Players could become half-divine campers at Camp Half-Blood to prepare for season two of Percy Jackson and the Olympians on Disney+. Tsum Tsum lovers can bring their collection to the Fortnite battlefield with Disney character “back bling” cosmetics, while a new Hoppers cosmetics bundle lets players channel their inner Tom the Lizard.

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