Electronic Arts (EA) announces company restructuring, to cut around 800 jobs
Electronic Arts (EA) is cutting around 800 jobs as part of a company restructuring, CEO Andrew Wilson announced in a blog post. This move makes EA the first dedicated video game publisher to announce job cuts that would affect a significant number of people. The layoffs will continue over the coming months until early next fiscal year, and Wilson did not specify how many workers will be impacted by the cuts, but a 2022 filing by the company said it had a workforce of almost 13,000.
Wilson said that EA has already started telling some of the affected workers that they will lose their jobs, and the layoffs are a result of the company deciding to move away from projects that no longer align with its goals, to review its real estate footprint, and to restructure some of its teams. In certain cases, EA will offer affected workers the opportunity to transition to other roles within the company. Those who don’t receive an offer or choose not to take a new role within EA will receive severance pay, company-paid health insurance, and career transition services.
The video game industry as a whole has been struggling with a slump in player spending since 2022, after a couple of years of growth fueled by increased gaming hours during pandemic lockdowns. EA has implemented several cost-cutting measures over the past months as a result, including shutting down Apex Legends Mobile and Battlefield Mobile. It also reportedly cancelled an unannounced single-player game set in the Titanfall and Apex Legends universe.
In May 2022, Puck News reported that EA was actively looking for a buyer or a company willing to undergo a merger. The company approached Disney and Comcast, but discussions ultimately broke down. Despite these challenges, EA remains a major player in the video game industry, and it’s likely that the company will continue to adapt and evolve as the industry evolves.