Electronic Arts (EA) has announces a second round of layoffs, impacting approximately five percent of its workforce, accounting for around 670 employees.
The move follows the company’s decision to cut six percent of its staff in March 2023, demonstrating a restructuring trend that has seen hundreds of layoffs within two years.
EA CEO Andrew Wilson said, in an internal email, that the layoffs are part of an ongoing effort to “optimise our global real estate footprint to best support our business.”
The restructuring involves streamlining company operations, discontinuing certain games, and moving away from the development of future licensed intellectual properties. Instead, EA aims to focus on owned IP, sports, and online communities.
Wilson acknowledged the challenges posed by these decisions, stating, “This is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams.”
The company has already started to inform affected staff, with the process expected to conclude by early next quarter. This follows a previous the job cuts in March 2023 and additional layoffs at EA-owned F1 developer Codemasters in December 2023.
Despite the shift away from licensed intellectual property, EA confirmed the ongoing development of two Marvel-based games, featuring Black Panther and Iron Man.
However, a separate announcement revealed the cancellation of Respawn Entertainment’s Star Wars first-person shooter (FPS), reportedly based on The Mandalorian.
Sony, Supermassive, Deck Nine, Cloud Imperium Games, and Die Gute Fabrik are among gaming giants facing layoffs or production halts.
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By GlobalData