Electronic Arts Announces Layoffs Amid Gaming Industry Restructuring
Electronic Arts (EA), the renowned developer behind popular franchises like Madden NFL and Apex Legends, revealed plans to lay off 5% of its workforce as part of a larger restructuring effort within the gaming industry.
In a securities filing on Tuesday, EA stated that the layoffs are intended to support strategic priorities and growth initiatives, including a reduction in office space footprint. CEO Andrew Wilson emphasized the company’s commitment to delivering deeper, more connected experiences for fans while streamlining operations to adapt to the evolving industry landscape.
Wilson’s memo to employees highlighted the decision to sunset certain games and discontinue the development of licensed intellectual properties deemed unlikely to succeed in the changing market. The restructuring aims to foster community engagement, shape culture, and expand fandom across EA’s portfolio.
The move comes amidst a broader trend of job cuts in the video game sector. Last year, EA itself laid off approximately 800 employees, while other industry giants like Epic Games, Tencent’s Riot Games, Microsoft, and Sony have also implemented significant workforce reductions in recent months.
According to EA’s annual report filed in May 2023, the company had 13,400 employees as of March 31, 2023. With Wednesday’s layoffs potentially impacting over 600 workers, the gaming giant continues to navigate challenges and adapt its operations to remain competitive.
Despite the announcement, EA’s stock closed up nearly 0.5% on Wednesday, reflecting ongoing investor confidence in the company’s long-term prospects. Over the past year, EA shares have seen a notable increase of nearly 27%, underscoring resilience amid industry-wide changes.
