American video game company Electronic Arts on Wednesday announced it will lay off approximately 5% of its workforce, marking the latest in a series of workforce reductions across the video game sector. A report by Variety highlighted that EA reported a total employee count of 13,400 in its last annual SEC filing, hence around 670 employees will be affected by this job cut.
“We are streamlining our company operations to deliver deeper, more connected experiences for fans 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,” EA chief executive officer Andrew Wilson said in a blog. “While not every team will be impacted, this is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams,” he added.
The layoffs reportedly accompany a strategic pivot for the company including the cancellation of several game projects. Among the most notable cancellations is a “Star Wars” first-person shooter game previously in development at Respawn Entertainment.
Established in May 1982 by former Apple employee Trip Hawkins, EA is a leading American video game company known for popular franchises such as “FIFA”, “The Sims” and “Madden NFL”, among others. The company’s downsizing decision comes at the time when the gaming industry in general is facing a tumultuous period, with significant layoffs affecting both large and small studios. This trend reflects broader challenges within the tech sector, including adjustments to post-pandemic demand fluctuations and strategic reassessments of project viability.
With this move, Electronic Arts joins Japanese tech giant Sony that also announced a substantial restructuring that involves laying off approximately 900 employees, or 8% of the company’s PlayStation workforce worldwide. This restructuring also impacts several key PlayStation studios, including Naughty Dog, Guerrilla, Insomniac, Firesprite studios, and most importantly, PlayStation’s London studio.
