EA lays off 6% of workforce in major shakeup announcement

Electronic Arts Layoffs: What You Need to Know

Electronic Arts (EA) is the latest video game company to reduce its workforce. EA is reportedly planning to lay off about 800 employees, which is 6% of its total workforce. EA announced the decision today in a statement to all its employees, signed by CEO Andrew Wilson, in which he explains the studio’s priorities and the reason for these cuts.

EA’s Strategy

The gaming giant is moving away from projects that do not contribute to its strategy. According to Wilson, the company is “reviewing our real estate footprint and restructuring some of our teams.” These measures are aimed at incurring between $170 million and $200 million in fees.

The Impact of the Layoffs

Some employees have already been informed of these layoffs in recent weeks, and they will continue to take place early in the next fiscal year beginning on April 1. The layoffs are in addition to the more than 200 testers who were laid off last month from the Baton Rouge studio in Louisiana, and who were part of the Apex Legends test team.

EA’s Future Plans

The restructuring will likely mean abandoning less financially viable projects and reinforcing more lucrative ones, such as Battlefield or sports games. Given these cuts, EA is making considerable investments in its popular titles.

Industry-Wide Layoffs

EA is not the only large video game, technology or communication company that has tightened its belt with restructuring in fewer projects and consequent layoffs. Take-Two also took similar measures, which included the closure of 2K Games Spain. In recent months, Disney, Microsoft, Amazon, and Goal have all announced substantial layoffs.

What to Expect

The gaming industry may see another wave of layoffs and consolidation as companies navigate the new reality of COVID-19 pandemic. In the end, only the strongest and most dependable will remain. It remains to be seen what other gaming industry titans will follow suit, but this could be a sign of the new norm in the gaming industry.

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