EA Announces Workforce Reduction, Plans to Cut 5% of Staff, Focus on Core Games and Online Communities
EA plans to cut 5% of its workforce, affecting approximately 670 employees. The layoffs are part of a strategy to streamline operations and focus on core strengths. This move follows a trend of downsizing within the video game industry.
Credit: Reuters
Electronic Arts (EA) has announced plans to cut 5% of its workforce, which amounts to approximately 670 employees. This move is part of a broader strategy that includes reducing office space and discontinuing work on certain video games.
As of March 2023, EA had a total of 13,400 employees, according to its most recent annual filing with the U.S. Securities and Exchange Commission. With the layoffs, around 670 jobs are expected to be affected.
This announcement from EA follows a trend of downsizing within the video game industry. Just recently, Sony revealed plans to lay off about 900 employees in its PlayStation division, representing 8% of its workforce. Microsoft also made cuts, eliminating 1,900 jobs in its gaming unit after acquiring Activision Blizzard. Additionally, Riot Games, a subsidiary of Tencent, reduced its workforce by 11%.
In a memo to employees, EA CEO Andrew Wilson explained that the company is streamlining its operations to provide more immersive experiences for fans. The layoffs are intended to support EA's strategic priorities and growth initiatives. The company expects the restructuring plan to be largely completed by the end of December.
Wilson emphasised that the cuts will allow EA to focus on its core strengths, including its owned intellectual properties, sports games, and thriving online communities. The company aims to optimise its global real estate footprint and shift away from developing licensed IP that may not succeed in the evolving industry.
During EA's third-quarter earnings call, Wilson highlighted the company's commitment to investing in its existing gaming franchises, such as Apex Legends, Battlefield, EA Sports FC, Madden NFL, and The Sims. These franchises have attracted large online audiences and will continue to be a focus for EA moving forward.
- EA plans to cut 5% of its workforce, affecting approximately 670 employees.
- The layoffs are part of a strategy to streamline operations and focus on core strengths.
- This move follows a trend of downsizing within the video game industry.
