Electronic Arts (EA) has announced plans to lay off around 670 people, representing about 5% of its total global workforce. The video game publisher said it is streamlining operations and moving resources away from developing future licensed IP games.
EA Shifting Resources Away From Licensed Games
As per IGN, according to EA CEO Andrew Wilson, the company is “moving away from the development of future licensed IP” and will instead focus on doubling down on its own franchises, sports offerings, and “massive online communities.”
While Wilson did not provide specifics on which licensed games would be discontinued, EA already announced it would be shutting down two of its mobile games – F1 Mobile Racing and MLB Tap Sports.
Additionally, sources have confirmed that EA is canceling the undisclosed Star Wars first-person shooter in development at Respawn Entertainment, which was announced last year but not yet fully revealed.
Workforce Reduction Aimed at Company Reorganization
In his note to staff, Wilson framed the layoffs as part of accelerating changes in the video game industry and said they are reorganizing the company to “empower creative leaders” and prioritize EA’s biggest opportunities.
He stated that the company’s actions over the past year have “positioned us to build bigger, bolder experiences for hundreds of millions of players and fans around the world.”
However, the workforce reduction will still significantly impact numerous teams across the organization. While some affected employees may be moved to other projects, Wilson acknowledged this will create uncertainty and challenges for many.
READ MORE: Highlights from the 2024 SAG Awards
EA’s restructuring comes amid an ongoing wave of layoffs across the video game industry. PlayStation recently eliminated 900 jobs, Die Gut Fabrik shut down entirely, and Supermassive laid off 90 people.
Industry insiders have cited various potential factors, including overhiring during the pandemic boom, struggles managing growing game scope and budgets, and lack of long-term planning.
Wilson said the job cuts at EA will be largely completed by early next quarter. He said, “I look forward to what we will create together,” while expressing appreciation to all who have contributed to the company
READ MORE: Zendaya mentions Tom Holland affectionately in new interviews during the Dune 2 press tour
Follow us for more gaming updates.
