Electronic Arts (EA), one of the leading game developers in the industry, has announced a restructuring plan that includes layoffs and the discontinuation of certain games. This move comes as part of a broader downsizing trend in the gaming and tech space, which has seen numerous job losses in recent times.
According to a securities filing on Tuesday, EA plans to lay off five percent of its employees and reduce its office space footprint. This decision is aimed at supporting the company’s “strategic priorities and growth initiatives.” Last year, EA had already cut 800 employees, and other major players in the industry, such as Epic Games and Tencent’s Riot Games, have also implemented similar measures.
Sony, another prominent player in the gaming industry, announced on Tuesday that it would be cutting eight percent of its global workforce, resulting in approximately 900 job losses. These developments highlight the challenges faced by companies in the gaming sector and the need for restructuring to adapt to changing market dynamics.
EA’s CEO, Andrew Wilson, sent a company-wide letter explaining the restructuring plan and its objectives. In the letter, Wilson emphasized the company’s goal of delivering “deeper, more connected experiences for fans everywhere.” To achieve this, EA will be moving away from licensed intellectual properties (IPs) and focusing on its owned IPs, sports games, and massive online communities. This strategic shift will involve sunsetting certain live service titles and discontinuing the development of projects that are not expected to be successful in the evolving industry.
While these changes will undoubtedly have an impact on the workforce, Wilson assured employees that every effort would be made to provide them with opportunities to transition onto other projects or find new roles within the company. The CEO expressed his commitment to supporting affected employees with attention, care, and respect.
The restructuring process is expected to be completed by early next quarter. As part of this plan, Respawn’s upcoming Star Wars first-person shooter will not be moving forward, according to a report by Video Games Chronicle. However, EA’s other licensed projects, including Motive’s Iron Man and Cliffhanger’s Black Panther, are still in development.
In a statement to VGC, EA Entertainment president Laura Miele acknowledged the difficulty of walking away from a project but emphasized that the decision was not a reflection of the team’s talent or passion. Miele highlighted the importance of delivering the next installments of iconic franchises to satisfy fans’ expectations and provide blockbuster storytelling.
EA’s restructuring plan reflects the company’s commitment to adapt to the changing gaming landscape and deliver innovative experiences to its dedicated fan base. While job losses are always challenging, EA aims to support affected employees and ensure a smooth transition during this period of transformation. As the gaming industry continues to evolve, companies like EA must make strategic decisions to stay competitive and meet the demands of players worldwide.