On Wednesday, video game company Electronic Arts (EA) announced its plans to reduce office space and cut around 800 jobs, which accounts for approximately 6% of its total workforce.
In a note addressed to employees, CEO Andrew Wilson explained that Electronic Arts (EA) is shifting its focus towards projects that align with the company’s strategy. As a result, they are reviewing their real estate footprint and restructuring some of their teams. Unfortunately, this has also led to layoffs, which Wilson acknowledged as the most challenging aspect of the process. He assured that the company is carrying out the process with utmost care and respect.
According to a filing with the SEC, Electronic Arts (EA) anticipates incurring impairment charges ranging from $170 to $200 million due to the restructuring plan. The company aims to complete the associated actions by the end of September.
CEO Andrew Wilson assured that Electronic Arts (EA) would provide severance and healthcare benefits to the impacted employees. He also mentioned that the layoff process had already commenced earlier in the quarter. As per the quarterly filing of March 2022, EA had a workforce of just under 13,000 employees. In January, the company reported quarterly revenue that fell short of estimates and issued a bookings forecast that was below market expectations.
During the earnings call, Chief Financial Officer Christopher Suh emphasized that Electronic Arts (EA) will exercise caution and intentionality, especially concerning the pace of hiring. Regarding Wednesday’s announcement and the precise number of job cuts, a company spokesperson declined to comment further.
Like many other tech companies, Electronic Arts (EA) has joined the growing list of businesses downsizing in response to the economic downturn and market reversal. In 2022, there were mass layoffs, and this year, the pace of cuts has accelerated.
According to data from Layoffs.fyi, over 155,000 tech industry workers at more than 500 companies have lost their jobs in 2023 alone.