EA announced a restructuring plan that will result in the company laying off 5% of its global workforce.
Electronic Arts announced today that the company is laying off approximately 5% of its employees as part of a restructuring plan that reduces real estate and office space as the video game industry struggles to grow due to high-interest rates. In the most recent yearly report, Electronic Arts published the headcount at 13,400 as of the end of March 2023, revealing that around 670 people will lose their jobs.
Big game publishers like Sony, Microsoft, and Riot Games have also laid off thousands of employees in recent months due to a slow recovery in the gaming market. It was also revealed that Electronic Arts is also moving away from the development of future licensed IP, which will not be successful in the future.
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Electronic Arts Cutting Off 5% of Its Workforce
CEO Andrew Wilson explained in a letter to employees that the publisher will be moving away from developing future games based on licensed IP and informed the employees about the reduction in workforce.
Given how and where we are working, we are continuing to optimize our global real estate footprint to best support our business. We are also sunsetting games and moving away from development of future licensed IP that we do not believe will be successful in our changing industry.
This greater focus allows us to drive creativity, accelerate innovation, and double down on our biggest opportunities — including our owned IP, sports, and massive online communities — to deliver the entertainment players want today and tomorrow. Lastly, we are streamlining our company operations to deliver deeper, more connected experiences for fans everywhere that build community, shape culture, and grow fandom.
In this time of change, we expect these decisions to impact approximately 5 percent of our workforce. I understand this will create uncertainty and be challenging for many who have worked with such dedication and passion and have made important contributions to our company. While not every team will be impacted, this is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams.
Our primary goal is to provide team members with opportunities to find new roles and paths to transition onto other projects. Where that’s not possible, we will support and work with each colleague with the utmost attention, care, and respect. Communicating these impacts has already begun and will be largely completed by early next quarter.
I want to extend my appreciation to everyone who has helped contribute to EA’s ongoing story. We are a team that leans into our values to lead the future of entertainment, and I look forward to what we will create together. Thank you for all that you do.
Andrew Wilson, Electronic Arts’ CEO
According to Electronic Arts, the restructuring plan’s related actions are expected to be substantially complete by the end of this year. CEO Andrew Wilson mentioned in his letter that the publisher will move away from developing games based on licensed IP, which has caused them to cancel several projects.
A representative of EA has confirmed that Marvel’s Black Panther and Iron Man games are still being developed. However, the publisher has cancelled the Star Wars Mandalorian game, which was in development at Respawn Entertainment.
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