Gaming Industry Giant Electronic Arts (EA) Shakes Up Workforce: 670 Jobs Lost
A smartphone with the Electronic Arts logo on the screen on the pile of the gamepads - stLegat / Alamy Stock Photo
EA Streamlines Operations with Layoffs and Strategic Shift
Video game giant Electronic Arts (EA) announced a restructuring plan on Wednesday, including layoffs impacting 5% of its workforce. This move follows a trend of downsizing within the tech industry, with recent job cuts hitting Sony’s PlayStation division, Microsoft’s gaming unit, and Tencent’s Riot Games.
The layoffs, estimated to affect around 670 employees, aim to streamline operations and support strategic growth initiatives. In a memo to staff, CEO Andrew Wilson emphasized a focus on “delivering deeper, more connected experiences for fans everywhere.”
EA’s restructuring plan goes beyond personnel reductions. The company plans to optimize its real estate footprint and refocus development efforts on “owned IP, sports, and massive online communities.” This suggests a potential shift away from certain licensed intellectual properties (IP) deemed less promising in the evolving gaming landscape.
These changes follow a period of mixed results for EA. While established franchises like Apex Legends and The Sims continue to attract large online audiences, other projects, such as the Star Wars FPS game recently cancelled at Respawn, have fallen short of expectations.
The industry is watching closely to see how EA’s restructuring plays out. Will the company successfully navigate this period of change and emerge stronger? Only time will tell, but the focus on core strengths like established IP and online communities suggests a strategic approach to future growth.
