In Redwood City, California, Electronic Arts has announced a significant reduction in its workforce, affecting approximately 5% of its global employees, totaling around 670 individuals.
The decision comes as CEO Andrew Wilson cites the “accelerating industry transformation” where player preferences have evolved. Notably, EA will be shifting its focus away from developing future licensed intellectual properties, opting to double down on its existing franchises, sports offerings, and online communities.
Wilson emphasizes the importance of driving creativity, accelerating innovation, and seizing opportunities to deliver the entertainment experiences that players desire, both now and in the future. The company’s restructuring efforts aim to streamline operations and provide deeper, more interconnected experiences for fans worldwide.
While the layoffs will predominantly impact support teams, developers may also be affected. However, EA intends to reallocate affected developers from canceled projects to other teams whenever possible. The company aims to complete these changes by early next quarter to minimize uncertainty and challenges for its employees.
This move by EA adds to a series of industry-wide layoffs affecting game developers of all sizes. With ongoing shifts in player engagement and market demands, companies are reassessing their strategies and aligning their resources with the evolving landscape of the gaming industry.
Despite the challenges posed by layoffs, game developers continue to explore opportunities for growth and innovation. As the industry adapts to changing consumer preferences and technological advancements, companies like EA are repositioning themselves to remain competitive and meet the ever-changing needs of gamers worldwide.
In the face of uncertainty, EA’s leadership remains committed to supporting its workforce and guiding the company through these changes. By providing opportunities for transition and collaboration, EA aims to navigate the evolving landscape of the gaming industry while honoring the contributions of its dedicated employees.