EA has announced a 5 percent reduction in employee headcount. The video game developer, commonly known as Electronic Arts, is laying off five percent of it’s staff, as reported in the filing with the Security and Exchange Commission on Wednesday. This reduction equates to more than 650 employees due to broader restructuring efforts, including office closures and discontinuation of projects already in development.
There has been a notable increase in layoffs within the tech sector and the video game industry over the past year and into the beginning of this year. EA joins the ranks of major video game developers undergoing employee layoffs. In the previous year, over 10,500 employees in the video game industry lost their jobs and in January 2024 alone, more than 6,000 employees faced similar circumstances. Other major developers, such as Microsoft, Unity Games and Riot Games, have also announced significant reductions in their employee headcounts. Additionally, Sony recently disclosed plans to lay off 900 employees, amounting to 8 percent of it’s total workforce in the PlayStation division.
In a letter to EA Employees, CEO Andrew Wilson said that the company is “streamlining our company operations to deliver deeper, more connected experiences for fans everywhere.” As per the letter, the company will complete the latest round of layoffs by early next quarter. He further said that the EA will now be more focused on “biggest opportunities — including our owned IP, sports, and massive online communities”.
The impact of these layoffs will notably affect the development of the Star Wars first-person shooter game, which is currently in progress at Respawn, a game development studio acquired by EA in 2017, according to IGN. Laura Miele, EA Entertainment president informed staff in a letter that, “It is always hard to walk away from a project and this decision is not a reflection of the team’s talent, tenacity, or passion they have for the game. Giving fans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus”.
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