Electronic Arts Announces Workforce Restructuring Plan, Cuts 650 Jobs

Video game publishing giant Electronic Arts is the latest gaming company to slash its workforce. The company announced its plan to restructure, resulting in a workforce reduction of more than 650 jobs, which accounts for around 5 percent of its workforce.

In a memo to staff, EA CEO Andrew Wilson expressed the difficulty of the decision and the company’s consideration of every option to limit its impact on the teams. Wilson also mentioned the company’s efforts to optimize its global real estate footprint, sunset games, and move away from development of future licensed intellectual property (IP) that is not expected to succeed in the changing industry.

As a result of the restructuring, EA will incur charges totaling approximately $125 million to $165 million, covering office space reductions, employee severance and related costs, and costs associated with licensor commitments. The company has also decided to cancel a high-profile upcoming Star Wars first-person shooter game. EA’s President of Entertainment and Technology, Laura Miele, explained the pivot from the Star Wars game to focus on projects based on the company’s owned brands and continuing support for existing games.

Furthermore, EA will also sunset some of its licensed mobile games, including Kim Kardashian Hollywood and a Lord of the Rings game. The decision to halt development of the Star Wars game coincides with Disney’s recent major investment in Epic Games, where the creation of a new universe integrating Star Wars and Marvel characters was announced.

The industry-wide transformation and changing player needs and motivations have prompted EA to optimize operations and prioritize its owned IP, sports, and online communities. The restructuring decision will impact around 5 percent of EA’s workforce, with reassurances from the company of providing affected team members with new opportunities or support in the transition.