Epic Games CEO Confirms "Major Shift" to Reorganize Teams Around AI
Article excerpt
Epic Games founder and CEO Tim Sweeney stated on October 12, 2026, that the company had undertaken a company-wide reorganization centered on artificial intelligence. "We are currently undertaking a major shift at Epic: reallocating developers to reorganize our teams and accelerate AI adoption to the maximum," Sweeney wrote in a post on his verified X account. Sweeney wrote that the goal of this change was not to accomplish the same work with fewer people, but to enable everyone at Epic to create more and better things, and to bring these benefits to all teams using Unreal. This confirmation followed an October 7, 2026 post in which Sweeney indicated that vendor revenues on Fab, Epic's 3D asset marketplace, had increased significantly in September. He attributed this rise to the acceleration of AI, writing that it had led to increased demand for content and that many developers were using AI assistants to create scenes while purchasing foundational elements on Fab. In a March 24, 2026 memo to employees published on Epic's website, Sweeney indicated that the company was laying off more than 1,000 employees. He cited a decline in engagement on Fortnite that began in 2025 and stated that Epic was spending much more than it was earning. He wrote that the layoffs, combined with more than $500 million in savings identified on contracts, marketing, and the elimination of certain...
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Epic is targeting an early access release of Unreal Engine 6 in late 2027, followed by the full release 12 to 18 months later.
