Electronic Arts (EA), one of the biggest players in the gaming industry, has recently announced a series of devastating changes that will have a significant impact on its workforce and game development. The company plans to lay off around five percent of its employees, resulting in nearly 700 people losing their jobs. In addition to the layoffs, EA is also canceling games and shutting down at least one development studio.
The news was delivered by EA CEO Andrew Wilson in an email to employees, which was later posted on the company’s blog. Wilson stated that these decisions were made in order to streamline operations and deliver more immersive experiences for fans. He emphasized the company’s commitment to building communities, shaping culture, and growing fandom.
While Wilson’s email attempted to soften the blow by using phrases like “streamlining” and “shifting staff,” the reality is that hundreds of individuals will soon find themselves unemployed. EA has stated that it will try to transition affected employees to new projects or roles before letting them go, but it’s uncertain how successful these efforts will be. Conversations with impacted employees have already begun and are expected to conclude by April.
This is not the first time EA has implemented mass layoffs. Less than a year ago, the company announced a similar round of job cuts, resulting in nearly 800 people losing their jobs. The gaming industry as a whole has been hit hard by layoffs in recent years, with over 8,000 people losing their jobs in the past two months alone. This trend is particularly concerning considering that the number of layoffs in 2023 is already on track to surpass the total for the entire previous year.
In addition to the layoffs, EA is also making significant changes to its game development strategy. The company is canceling or discontinuing some of its development studio’s titles and shifting focus away from games based on licensed intellectual properties (IP). Wilson stated that this change will allow EA to concentrate on its owned IP, sports, and massive online communities.
One of the casualties of this shift in strategy is the Star Wars first-person shooter that Respawn Entertainment had been working on. The studio behind popular games like Apex Legends and the Star Wars Jedi series will now be directed back towards its existing franchises. However, not all EA Studios games based on external licensed IP will be canceled. The Black Panther title from Cliffhanger Games and the Iron Man game from Motive Studio are reportedly still in development, although the developers may feel uncertain about their future.
EA’s decision to move away from licensed IP also extends to its mobile games. The company has already announced that it is discontinuing popular titles such as Kim Kardashian Hollywood, Lord of the Rings: Heroes of Middle-earth, MLB Tap Sports Baseball, and F1 Mobile. EA believes that focusing on its remaining games in the portfolio will lead to growth and success.
Unfortunately, even working on company-owned IP does not guarantee job security. Ridgeline Studio, a U.S. developer focused on creating a new story set in the Battlefield universe, will be shut down completely. Studio head and Halo co-creator Marcus Lehto has already made the personal decision to leave. Criterion Games will now take over the responsibility of developing the Battlefield game, while Ridgeline will close without ever releasing a game.
The news of EA’s layoffs comes just one day after PlayStation announced its own round of job cuts, affecting around 900 employees. This ongoing trend of layoffs in the gaming industry is a cause for concern and highlights the challenges faced by both large and small companies in an ever-changing market.
As the gaming industry continues to evolve, companies like EA are forced to make difficult decisions to stay competitive. While these changes may be necessary for long-term success, they come at a significant cost to employees and studios. The impact of these layoffs and cancellations will be felt not only by those directly affected but also by the gaming community as a whole. It remains to be seen how EA will navigate these challenges and what the future holds for the company and its employees.
