Andrew Wilson
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Video game publishing giant Electronic Arts is the latest gaming company to cut its workforce.
The company announced the restructuring plan on Wednesday, telling employees that it would cut about 5% of its workforce, or more than 650 jobs.
“While not every team will be affected, this is the hardest part of these changes, and we have deeply considered each option to try to limit the impacts to our teams,” EA CEO Andrew Wilson wrote in a memo to employees.
“Given how and where we operate, we continue to improve our global real estate footprint to better support our business,” Wilson added. “We are also working to wind down gaming and move away from developing licensed intellectual property in the future that we do not believe will be successful in our changing industry. This greater focus allows us to stimulate creativity, accelerate innovation, and double down on our biggest opportunities – including our own proprietary intellectual property, esports , and massive online communities – to deliver the entertainment that players want today and tomorrow. Finally, we are streamlining our company operations to deliver deeper, more connected experiences for fans everywhere that build community, shape culture and grow fandom.
In a securities filing, EA said it would incur approximately $125 million to $165 million in total charges related to the restructuring plan, including $50 million to $65 million associated with office space reductions, and approximately $40 million to $55 million. Dollars related to dismissal of employees and employee compensation. Related costs, and $35 million to $45 million of costs associated with licensor obligations.
This will include canceling an upcoming high-profile event star Wars The first-person shooter game, according to a memo from EA Entertainment and Technology President Laura Milley.
“As we looked [EA’s Star Wars studio] “In Respawn’s portfolio over the past few months, what is clear is that the games our players are most excited about are Jedi and Respawn’s rich library of proprietary brands,” Milley wrote. “Knowing this, we decided to move away from early development of star Wars FPS Action Game to focus our efforts on new projects based on our owned brands while providing support for existing games. It's always difficult to walk away from a project, and this decision does not reflect the team's talent, perseverance, or passion for the game.
Millie added that the company will be canceling some licensed mobile games as well, including… Hollywood Kim Kardashian And a Lord of the rings Game.
Decision to stop development star Wars The game comes just a few weeks after Disney announced a major investment in Epic Games, with plans to create a new world that includes… star Wars And Marvel characters.
Read Wilson's memo below.
a team,
We're working to entertain, inspire and connect more people to greater content and deeper experiences than ever before. Over the past year, we've structured our company to further empower our creative leaders to achieve our strategic priorities of entertaining massive online communities, telling blockbuster stories, and harnessing the power of community in and around our games. These actions have enabled us to build bigger, bolder experiences for hundreds of millions of players and fans around the world.
We are also leading an accelerating transformation in the industry as players' needs and motivations have changed dramatically. Fans are increasingly engaging with the biggest IP, and look to us for broader experiences where they can play, watch, create content, and make deeper connections. Our industry is at the forefront of entertainment, and in today's dynamic environment, we are evolving the way we work and continue to evolve our business.
As a company full of innovators and storytellers, we believe in the value of teams innovating together, and we continue to learn and adopt new ways to collaborate in order to grow and serve our global communities. Given how and where we operate, we continue to improve our global real estate footprint to better support our business. We are also working to retire games and move away from developing licensed intellectual property in the future that we do not believe will be successful in our changing industry. This greater focus allows us to drive creativity, accelerate innovation, and leverage our biggest opportunities – including our proprietary intellectual property, esports, and massive online communities – to deliver the entertainment that players want today and tomorrow. Finally, we're streamlining our company operations to deliver deeper, more connected experiences for audiences everywhere that build community, shape culture and grow fandom.
In this time of change, we expect these decisions to impact approximately 5 percent of our workforce. I realize this will create uncertainty and challenge many who have worked with such dedication and passion and made important contributions to our company. Although not every team will be affected, this is the hardest part of these changes, and we have deeply considered each option to try to limit the impacts on our teams. Our primary goal is to provide team members with opportunities to find new roles and paths to move on to other projects. When this is not possible, we will support each colleague and work with them with the utmost care, care and respect. Reporting on these impacts has already begun and will be largely completed by early next quarter.
I want to express my appreciation to everyone who helped contribute to EA's ongoing story. We are a team that relies on our values to drive the future of entertainment, and I look forward to what we will create together. Thank you for everything you do.
Andrew
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