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Electronic Arts (EA) has announced plans to lay off five percent of its employees and discontinue work on several games as part of a broader restructuring effort. This move comes amidst an ongoing downsizing trend in the gaming and tech industry that has seen thousands of jobs being lost.
The decision to cut jobs and sunset certain titles is aimed at supporting strategic priorities and growth initiatives, according to EA. Last year, the company cut 800 employees, while other industry giants like Epic Games and Tencent’s Riot Games also laid off hundreds of workers. Sony recently joined the trend by announcing an 8% cut to its global workforce, resulting in around 900 job losses.
EA, which had 13,400 employees according to its annual report from last year, could potentially see around 600 job losses from the current cuts. CEO Andrew Wilson issued a letter to staff detailing the restructuring, which includes ending development on certain projects and focusing on owned IP, sports, and online communities in future endeavors.
The company has pledged to work with affected employees to help them find new roles or transition onto other projects. The restructuring is expected to be completed by the early next quarter, with projects like Respawn’s Star Wars first-person shooter title not moving forward while others like Iron Man and Black Panther remain in development.
The layoffs at EA are just the latest in a series of job cuts within the gaming and tech industry, highlighting the challenges and volatility faced by companies in this competitive sector.
