Electronic Arts, which makes games such as Madden NFL And Apex LegendsIt said today that it plans to lay off five percent of its employees and will stop working on several games.
This announcement continues the ongoing process of downsizing in the gaming and technology industry, a development that has led to the loss of thousands of jobs.
EA said the layoffs are part of a broader restructuring aimed at supporting “strategic priorities and growth initiatives,” according to a securities filing Tuesday. EA said in that document that it also plans to reduce its office footprint.
Last year, EA laid off 800 employees, while Epic Games cut 830 jobs in September. In January, Tencent's Riot Games said it would lay off 11% of its workforce, and Microsoft said it would cut 1,900 jobs from its Activision Blizzard and Xbox gaming divisions.
Sony said on Tuesday that it would cut 8% of its global workforce, amounting to about 900 jobs.
Based on EA's annual report, issued in May of last year, the company had 13,400 employees. This means that the current cuts could result in the loss of about 600 jobs.
Along with the job cuts, CEO Andrew Wilson issued a company-wide letter informing employees of the publisher's restructuring. This means the end of some live service titles and the discontinuation of development of certain projects.
Wilson stated in his letter that EA is restructuring to become simpler in order to deliver “deeper, more connected experiences for fans everywhere that build community, shape culture, and grow fandom.” He said the company will move away from licensed IPs and close some titles to divert its development resources.
“We are also working to end gaming and move away from future development of licensed intellectual property that we do not believe will be successful in our changing industry,” Wilson said in the letter. “This greater focus allows us to drive creativity, accelerate innovation, and double down on our biggest opportunities – including our proprietary intellectual property, esports, and massive online communities – to deliver the entertainment that players want today and tomorrow.”
Wilson then talks about the extent of the layoffs and how she will work with affected employees:
“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 on our teams. Our primary goal is to provide team members with opportunities to find new roles and paths to transition to other projects. When If this is not possible, we will support each colleague and work with them with the utmost interest, care and respect.
The restructuring process is expected to be completed by early next quarter.
History of video games Respawn reported coming star Wars This first-person shooter is one title that doesn't move forward.
In a statement to VGC, EA Entertainment president Laura Milley said in part: “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. Giving fans the next installments of iconic franchises they want is the definition of blockbuster storytelling.” The right place to focus.
Other upcoming licensed projects from EA Motive's include Iron Man And Cliffhanger Black Panther. An EA representative confirmed to GameIndustry.biz that both projects are still in development.
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