Electronic Arts, the gaming behemoth behind hits like "Apex Legends" and "The Sims," is slashing jobs amid what's shaping up to be a tough year for tech workers, particularly in gaming. CEO Andrew Wilson broke the tough news, revealing a 5% workforce reduction which would affect an estimated 600 employees, as reported by SFGATE. This move comes after EA let go of 6% of its staff in March, signaling a continued downsizing trend in the company.
During this "accelerating industry transformation," Wilson expressed in a statement obtained by EA's news release, that they deeply considered every option to limit impacts and stressed the goal of reassigning team members to new roles where possible; otherwise, they commit to offering support with "the utmost attention, care, and respect." Moreover, the firm has planned a pivot away from development of future licensed IP not projected to flourish in a changing market.
Additionally, EA announced an initiative to streamline operations, creating what Wilson described as "deeper, more connected experiences" for the gaming community. This strategic realignment involves trimming some of the company's real estate holdings, as stated in an SEC filing from Wednesday, however, the details regarding the specific locations affected remain undisclosed. EA's real estate footprint spans across multiple global regions, with numerous offices in the U.S., Europe, Asia, Canada, and Australia.
The layoff's financial implications show EA anticipates spending between $40 million and $55 million in severance and employee-related costs, yet amidst these cuts, the company's profits towered at $1 billion from March to December of the prior year, and Wilson's salary exceeded $20 million for the fiscal year 2023 as per SEC filings. The gaming community has felt the impact with other giants like Sony Interactive Entertainment and San Francisco's Unity Software announcing massive workforce reductions, creating a starker outlook for the industry's labor landscape.
The restructuring within EA promises not only to affect their staffing but also seeks to adjust their portfolio, with the company planning to sunset some games and step back from certain licensed IPs, aiming to concentrate on expanding their owned franchises, sports titles, and massive online communities; a downsizing shift that has become prevalent in the tech and gaming sectors since the start of 2024, as noted by SFGATE, with Twitch and Discord also contributing to the trend by issuing layoffs.
