Electronic Arts has laid off 6% of its workforce following restructuring
by Danny Craig ·
Gaming giant Electronic Arts (EA) has announced that it has let go of 6% of its total workforce in a company-wide restructure.
- CEO Andrew Wilson announced in a new blog post containing the company-wide announcement that the publisher has made job cuts and reduced some of its office space. As of March 31, 2022, EA employed approximately 12,900 people worldwide across its various studios and subsidiaries, implying that the move has cut an estimated 775 jobs. This is yet another round of layoffs at EA, with some employees at Respawn Entertainment and Industrial Toys laid off earlier this year following the cancellation of multiple projects and the closure of Apex Mobile.
- Wilson stated in the note that the publisher was still "operating from a position of strength" and that the restructuring was the result of the company focusing on "strategic priorities." “Building games and experiences that will entertain large communities, providing social and creator tools to communities, and creating blockbuster interactive storytelling" are among the priorities. Some of the company's recent project cancellations appear to be due to it "moving away from projects that do not contribute" to its "strategy" going forward, as they were likely not worth the cost of development in comparison to its heavy hitters like FIFA 23 and Apex Legends.
- It's unclear which areas are directly affected, but EA began informing those who were laid off earlier this quarter and will continue to do so until the fiscal year ends in April. Employees who are laid off are said to be given opportunities to transition to other projects within EA where appropriate. Those who are unable or unwilling to are offered full severance pay, health care, and career transition services. According to an 8K form filed with the US Securities and Exchange Commission following the announcement, the restructuring is expected to cost EA $170 million to $200 million in charges, and it is expected to be completed by September 2023.
More EA news:
- The upcoming Star Wars FPS from Respawn Entertainment will be inspired by the older Jedi Knight series of shooters from the early 2000s. It's one of three Star Wars projects in the works at the studio, along with the postponed Jedi: Survivor and the Bit Reactor-led strategy game, which will reportedly use Unreal Engine 5.
- Battlefield 1943, and Bad Company 1 and 2’s online services will be shut down in December, and all games will be removed from online stores in April. After the closures, players will still be able to download the games; however, the online multiplayer for each will be officially unavailable, rendering 1943 completely unplayable.
- Respawn Entertainment has opened a new studio in Wisconsin. The new Madison, WI, location will continue to work on future Apex Legends content alongside the studio's existing locations and will be led by gaming industry veteran Ryan Burnett.