Electronic Arts (EA), the renowned video game corporation, has reported that it will decrease its workforce by 5% as part of a broader strategy that includes lessening office space and discontinuing development on certain video games. As per the company’s recent annual filing in May with the U.S. Securities and Exchange Commission, EA had 13,400 employees as of March 2023, indicating that the layoffs could impact roughly 670 positions.
This latest announcement by EA comes against the backdrop of numerous video game developers recently reducing their workforce sizes, a pattern that mirrors wider downsizing trends within the tech industry. Sony recently announced it would lay off around 900 employees from its PlayStation division, representing an 8% staff reduction. Similarly, following its acquisition of Activision Blizzard, Microsoft cut 1,900 jobs from its gaming unit, and Tencent’s Riot Games also reduced its workforce by 11%.
Andrew Wilson, CEO of Electronic Arts, shared in a memo to the company’s workforce on Wednesday that EA aims to streamline its operations to achieve deeper, more interconnected experiences for its global fanbase. In line with the company’s strategic and growth-oriented goals, Wilson noted that the restructuring plan should be largely complete by December this year.
The CEO stated that EA would optimise its global real estate footprint to best serve the corporation’s requirements and cease the development of future licensed IP that the company doesn’t consider likely to succeed amid industry changes. Wilson assured that the restructuring measure would enable EA to concentrate more on its most promising ventures. These include its owned IP, sports games, and expansive online communities.
During EA’s third-quarter earnings call last month, Wilson revealed the company’s intent to continue investing in its existing gaming franchises that have large online followings. Notable examples are Apex Legends, Battlefield, EA Sports FC, Madden NFL, and The Sims.
