As part of a larger restructuring effort, Electronic Arts (EA) intends to stop development on multiple games and lay off five percent of its staff.
This announcement is a reflection of the continued layoffs in the tech and gaming industries, where thousands of jobs have been lost recently.
Electronic Arts and Games Lay Off 5% Workforce
According to a securities filing, the restructuring and layoffs are intended to support EA’s growth initiatives and strategic priorities.
800 employees were let go by EA last year, and layoffs were also made by Microsoft, Epic Games, Riot Games, and other companies.
Additionally, Sony revealed plans to eliminate 900 jobs or 8% of its global workforce. EA employed 13,400 people, according to its annual report, meaning that the current cuts may result in the loss of about 600 jobs.
As part of a larger restructuring effort, Electronic Arts (EA) intends to stop development on multiple games and lay off five percent of its staff.
According to a securities filing, the restructuring and layoffs are intended to support EA’s growth initiatives and strategic priorities.
A letter to the entire staff was sent by CEO Andrew Wilson explaining the reorganization, which includes ending development on some projects and sunsetting some live service titles. Wilson said that by moving away from licensed IPs and discontinuing some titles, EA will concentrate on providing fans with deeper, more connected experiences.
What is The Goal Behind The Reorganization
The goal of the reorganization is to boost innovation, foster creativity, and capitalize on EA’s greatest assets, which include sports, owned intellectual property, and large-scale online communities.
Affected employees will have the chance to find new positions and a smooth transition to other projects with the help and respect of EA.
The reorganization should be finished by the beginning of the following quarter. Additionally, Video Games Chronicle reports that one game that is not progressing is Respawn’s upcoming first-person shooter for the Star Wars franchise.
The president of EA Entertainment, Laura Miele, acknowledged that abandoning a project is never easy but stressed that the choice does not speak to the team’s skill or enthusiasm. Other licensed projects from EA are still in development, such as Black Panther from Cliffhanger and Iron Man from Motive.
EA’s focus on delivering blockbuster storytelling and satisfying fan expectations for iconic franchises is evident in the decision to discontinue certain projects.
