Firm to chop 800 staff or 6% of the workforce
An Electronic Arts (EA) video game logo is seen at the Electronic Entertainment Expo
Lucy Nicholson | Reuters
Electronic Arts 6% of its workforce, equivalent to about 800 jobs, and cutting office space, the video game company said on Wednesday.
“As we further focus our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint and restructuring some of our teams,” CEO Andrew Wilson wrote in a note to employees. Layoffs are “the most difficult part and we work through the process with the utmost care and respect,” he wrote.
According to a filing with the SEC, the company expects impairments of between $170 million and $200 million. EA expects the actions associated with the restructuring plan to be “substantially complete” by the end of September.
Wilson said EA will provide severance and healthcare to affected employees, noting that layoffs had begun earlier in the quarter.
According to a quarterly report in March 2022, EA had almost 13,000 employees. In January, the company missed quarterly revenue estimates and issued a weaker-than-expected bookings forecast.
Chief Financial Officer Christopher Suh said on the earnings call that EA will be “very deliberate” with a particular focus on “pace of hiring.”
A company spokesman declined to comment further on Wednesday’s announcement or give an exact number of job cuts.
EA joins a long list of tech companies in downsizing mode. The economic downturn and market reversal led to mass layoffs in 2022 and a faster pace of cuts this year. According to data from Layoffs.fyi, over 155,000 tech workers at more than 500 companies lost their jobs in 2023.
REGARD: tech layoffs