Electronic Arts Restructures, Lays Off 670 Employees
Electronic Arts is undergoing a restructuring process that includes laying off approximately 5 percent of its workforce, totaling around 670 employees. CEO Andrew Wilson communicated this decision to staff through a company-wide letter, detailing the need to sunset certain live service titles and halt the development of specific projects.
In the letter, Wilson emphasized the company’s goal to streamline operations to provide fans with more immersive and connected experiences, fostering community, influencing culture, and expanding fandom. As part of this strategic shift, EA will move away from licensed IPs and discontinue certain titles in order to reallocate development resources.
Wilson stated, “We are also sunsetting games and moving away from the development of future licensed IP that we do not believe will be successful in our changing industry.” This move allows EA to prioritize creativity, enhance innovation, and focus on key opportunities such as owned IP, sports titles, and large online communities to meet the evolving entertainment needs of players.
Restructuring Process and Support for Employees
Addressing the impact of the layoffs, Wilson assured that while not every team will be affected, the company has thoroughly explored ways to minimize the consequences for its employees. The primary objective is to help team members transition to new roles and projects. For individuals unable to find alternate opportunities within the company, EA will provide support and assistance in a thoughtful and respectful manner.
The restructuring is anticipated to conclude by early next quarter. This decision follows EA’s previous action in March last year when it cut 6 percent of its global workforce.
Impacts on Respawn’s Star Wars Game
According to Video Games Chronicle, one of the casualties of EA’s restructuring is the upcoming Star Wars first-person shooter game by Respawn. Initially announced in January 2022, the unnamed project, led by industry veteran Peter Hirschmann, may have featured a Mandalorian bounty hunter. EA Entertainment president Laura Miele expressed the difficulty of shelving the project but emphasized the importance of focusing on delivering anticipated sequels to beloved franchises.
Other ongoing licensed projects at EA include Motive’s Iron Man and Cliffhanger’s Black Panther, confirming that work on these titles continues despite the recent company-wide changes.
Industry-Wide Layoffs in 2024
The workforce reductions at Electronic Arts add to a series of layoffs within the gaming industry in 2024, totaling over 8,000 job cuts in the first two months alone. PlayStation announced the layoff of 900 employees across various studios, including Insomniac, Naughty Dog, and Guerrilla, and decided to close down London Studio. Other companies like Supermassive Games, Embracer Group, Black Forest Games, and Microsoft have also reduced their workforce numbers this year.
These industry-wide layoffs are part of a larger trend that saw more than 10,000 job cuts in the games industry and related sectors in the previous year.