Valve Veteran Chet Faliszek Criticizes Epic Layoffs

A recent wave of layoffs at Epic Games has triggered renewed scrutiny of how large game companies balance growth, profitability, and workforce. Epic Games' recent decision to cut more than 1K employees painted a grim picture of the gaming industry, which Chet Faliszek, a former Valve employee, addressed in a TikTok video.

Epic confirmed the layoffs in March 2026, citing financial strain and declining engagement in its flagship title, Fortnite. Faliszek's arguments moved beyond a single company and questioned how modern game development balances creative ownership, financial strategy, and workforce stability.

Faliszek’s central argument focused on the disconnect between corporate decision-making and developer agency. “How do you have any ownership when you're just gonna get laid off like this?” he asked, reacting to Epic’s layoffs. He also pointed to Epic’s scale as one of the largest global video game publishers, while noting that the company is not publicly traded and therefore not subject to the same quarterly pressures as listed firms.

His broader critique targeted what he described as a shift toward maximizing revenue through a narrow product focus. He mentioned Epic's CEO Tim Sweeney, stating, “you stopped caring about making things.”

Faliszek’s Criticism Targets the Scale of Epic's Layoff

"The downturn in Fortnite engagement that started in 2025 means we're spending significantly more than we're making," reasoned Sweeney in an internal memo. The cuts, alongside over $500 million USD in projected savings from reduced marketing and contractor spending, were framed as necessary to put the company "in a more stable place."

Alongside the layoffs, Epic announced it would shut down Fortnite Rocket Racing, Ballistic, and Festival Battle Stage.

Faliszek addressed the scale of the layoffs, stating that the number of people that were laid off are more than Valve’s entire workforce. This is also not the first time. In September 2023, Epic cut approximately 830 jobs, or 16% of its workforce.

Valve vs Epic: Two Competing Philosophies According to Chet Faliszek

Faliszek’s criticism draws heavily on his experience at Valve, which he positioned as a healthy work environment with more agency and ownership for employees. “When I worked at Valve, I owned Valve,” he stated.

Faliszek did not put across that every company should be Valve; he made a point that a company should have a structure where people care about what they make and who they work with. By drawing a comparison with Valve, Faliszek tried to put forward the difference in the philosophies of both companies.

"They care so much about what they're making that they're still there and they're all rewarded handsomely," emphasized Faliszek, highlighting the correlation between passionate work and a corporate structure that fosters employees. He further stated that at Valve, he was sufficiently compensated for his work.

What Epic Games Layoffs Signal for the Gaming Industry

The Epic layoffs are not an isolated event; they are another high-profile episode in the pattern of sustained workforce dissatisfaction observed in the gaming industry since the pandemic era. According to a GDC report, approximately 28% of gaming professionals were laid off between 2023 and 2025.

Faliszek's concern extends beyond Epic specifically. In early 2026, companies like Riot Games, Rockstar, Electronic Arts, and Xbox significantly cut down their workforce, all with reasons based on the betterment of the team and company.

He addressed these continuous layoffs within the game industry, stating, “we're losing the care, we're losing the passion." He further stated that he would rather care for people and reward them, so that “they'll invest and work hard.”

His concerns and fears are not unfounded. Frequent layoff cycles weaken institutional expertise, while giving junior developers the impression that their devotion is not valued, which ultimately decreases the creative depth that studios require.

As layoffs continue and development costs rise, the global video game industry faces a structural challenge. The issue now is not only with profitability and revenue, but with stability and integrity. With the global gaming market projected to grow to $505.17B by 2030, it remains to be seen how companies can balance profitability with a sense of agency and creative investment that people like Faliszek argue is essential.