Electronic Arts (EA) to reduce workforce by 5%, equating to approximately 670 job cuts

On Wednesday, Electronic Arts revealed its decision to implement a workforce reduction, constituting 5% of its employees. This strategic initiative encompasses not only job cuts but also involves downsizing office spaces and discontinuing development on certain video games. As of the conclusion of March 2023, EA’s workforce stood at 13,400 individuals, as reported in its latest annual filing with the U.S. Securities and Exchange Commission in May. Consequently, the projected layoffs are estimated to impact around 670 positions.

The recent declaration by the company reflects the ongoing trend of downsizing within the video game development sector in recent months, aligning with a broader pattern of substantial workforce reductions in the tech industry. Just a day earlier, Sony announced plans to cut around 900 positions in its PlayStation division, constituting 8% of its overall workforce. Additionally, Microsoft initiated a reduction of 1,900 jobs in its gaming unit last month, a move occurring three months after its acquisition of Activision Blizzard. Concurrently, Tencent’s Riot Games implemented a workforce reduction of 11%.

In a memo addressed to employees on Wednesday, EA CEO Andrew Wilson conveyed the company’s intention to streamline operations for the purpose of providing more immersive and interconnected experiences for fans globally. The outlined cuts are positioned to bolster EA’s strategic priorities and growth initiatives, as detailed in a filing with the Securities and Exchange Commission (SEC) on Wednesday. The company anticipates that the restructuring plan will be largely finalized by the conclusion of December.

In his note on Wednesday, Wilson expressed the ongoing effort to enhance efficiency in our worldwide real estate presence to align with our business needs. Additionally, he mentioned the decision to discontinue certain games and cease the development of future licensed intellectual property (IP) perceived as unlikely to succeed in the evolving industry landscape. Wilson emphasized that these cuts aim to redirect focus towards the company’s significant opportunities, particularly emphasizing owned IP, sports, and extensive online communities.

In the third-quarter earnings call conducted last month, Wilson highlighted the company’s commitment to ongoing investments in its established gaming franchises that draw substantial online audiences. This focus encompasses titles such as Apex Legends, Battlefield, EA Sports FC, Madden NFL, and The Sims.