March 29, 2023

Due to Global Crisis, EA Lays Off 6% of Workforce

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Due to Global Crisis, EA Lays Off 6% of Workforce

By Nick | March 29, 2023

According to The Wall Street Journal, Electronic Arts is reportedly laying off approximately 6 percent of its workforce, as reported by The Wall Street Journal. In an announcement made Wednesday, EA CEO Andrew Wilson stated that job elimination was part of the company's efforts to reassess its investment strategy and economize on office space.

EA Lays off 6% of Its Workforce

Wilson states that they are driving greater focus across their portfolio, moving away from projects that do not contribute to their strategy, reviewing their real estate footprint, and restructuring some of the teams. These decisions are expected to impact approximately six percent of the company's workforce.

Wilson does not disclose the departments that will be affected by layoffs, but he does note that his company will provide "opportunities for our colleagues to transition onto other projects" when practical. According to the Journal, EA had a reported employee count of 13,000 last year; this means a 6 percent cut could indicate the elimination of approximately 780 jobs. The company has already started informing some affected workers in this quarter and anticipates these notifications to persist until early in the next fiscal year.

EA will provide severance pay, healthcare, and transition services to the workers affected by the layoffs and restructuring, as stated in an 8-K form filed with the Securities and Exchange Commission. Charges stemming from this process are estimated to total between $170 million and $200 million. Electronic Arts (EA), publisher of popular games such as The Sims and Madden NFL, laid off roughly 200 Apex Legends testers within a Zoom call in February, according to a report by Kotaku.

As part of the company's effort to reduce spending, EA announced their decision to terminate Apex Legends Mobile in January and ceased developing their previously started Battlefield mobile title. Additionally, the business declared the cancellation of an upcoming Titanfall sole-player game.

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