Electronic Arts Announces Layoffs and Game Cancellations in Restructuring Plan

Electronic Arts (EA), the popular gaming company behind titles such as Madden NFL and Apex Legends, has recently announced plans to lay off approximately 5% of its employees and discontinue the development of several games. This decision comes amidst a larger trend of downsizing within the gaming and tech industry, resulting in significant job losses. Let’s explore the details of this development.

Broader Restructuring and Strategic Priorities

According to a securities filing by EA, the layoffs are part of a broader restructuring effort aimed at supporting the company’s strategic priorities and growth initiatives. The company will also be reducing its office space footprint as part of this restructuring.

Continued Downsizing in the Gaming Industry

This downsizing trend is not unique to EA. Other prominent gaming companies, including Epic Games, Riot Games, and Microsoft, have also undertaken job cuts in recent months. Sony has also recently announced plans to reduce its global workforce by 8%, resulting in approximately 900 job losses.

Size of Workforce Reductions

EA, as of its last reported annual report, had a total workforce of 13,400 employees. With the current cuts amounting to approximately 5% of the workforce, around 600 jobs might be lost. While CEO Andrew Wilson assured the staff that the company would assist affected employees in finding new roles, the process of downsizing remains challenging.

Transitioning to Deeper, More Connected Experiences

Wilson emphasized in a company-wide letter that EA’s restructuring aims to deliver “deeper, more connected experiences” to players. This focus involves utilizing the company’s owned intellectual properties, enhancing sports-related content, and fostering online communities. As a result, EA intends to move away from licensed IPs and discontinue certain titles to reallocate development resources effectively.

Future Projects and Game Releases

While the company will sunset some existing live-service games and halt the development of certain projects, EA Entertainment president Laura Miele has confirmed that upcoming licensed games such as Motive’s Iron Man and Cliffhanger’s Black Panther are still in development. This indicates the company’s commitment to delivering high-quality, highly anticipated titles to its fans.

EA’s restructuring process, including the layoffs and game discontinuations, is expected to be completed by the following quarter. As the gaming industry continues to evolve and adapt, EA aims to position itself as a more streamlined company, focused on delivering compelling gaming experiences, fostering strong communities, and driving innovation in the industry.