Redwood City, California – Electronic Arts, a prominent video game publisher, has recently announced a significant workforce reduction. The company revealed its restructuring plan, stating that it will be cutting approximately 5 percent of its employees, amounting to more than 650 jobs.
In a memo to the staff, EA CEO Andrew Wilson expressed the challenges of these changes, highlighting the company’s efforts to minimize the impact on its teams. The restructuring includes optimizing the global real estate footprint, focusing on specific areas such as owned intellectual property (IP), sports, and online communities.
The company is expected to incur charges of around $125 million to $165 million related to the restructuring plan. This includes costs associated with office space reductions, employee severance, and the cancellation of a high-profile upcoming Star Wars first-person shooter game.
EA’s decision to pivot away from the Star Wars game development aligns with the shifting preferences of players towards Jedi and other owned brands. The company also plans to sunset certain licensed mobile games like Kim Kardashian Hollywood and a Lord of the Rings game.
This strategic shift comes shortly after Disney’s announcement of a major investment in Epic Games to create a new universe featuring Star Wars and Marvel characters. The decision reflects EA’s focus on adapting to the changing industry landscape and doubling down on its most significant opportunities.
In a message to the team, Andrew Wilson emphasized the company’s commitment to innovating and providing deeper experiences for global communities. Despite the challenges posed by the workforce reduction, EA aims to support affected employees in finding new roles or transitioning to other projects with respect and care.
As EA navigates through this period of change, the company remains dedicated to leading the future of entertainment by fostering creativity, innovation, and strong community connections. The restructuring reflects EA’s strategic vision to deliver the best entertainment experiences for players today and in the future.