Electronic Arts cuts jobs for more than 670 workers

28.02.2024 - 23:35 / polygon.com / Andrew Wilson / Laura Miele

Electronic Arts is laying off 5% of its workforce, or around 670 of the company’s workers. EA employed around 13,400 people by the end of last March, according to a regulatory filing. Sixty-five percent of those employees are located outside the U.S., it said at the time. Notifying impacted employees “has already begun and will be largely completed by early next quarter,” EA CEO Andrew Wilson wrote in a note to staff published Wednesday.

Wilson also said EA is “moving away from development of future licensed IP that we do not believe will be successful in our changing industry.” Instead, it’ll focus on “owned IP, sports, and massive online communities.”

“We are also leading through an accelerating industry transformation where player needs and motivations have changed significantly,” Wilson wrote. “Fans are increasingly engaging with the largest IP, and looking to us for broader experiences where they can play, watch, create content, and forge deeper connections. Our industry exists at the cutting edge of entertainment, and in today’s dynamic environment, we are advancing the way we work and continuing to evolve our business.”

No specific games were mentioned in Wilson’s note, although EA is currently developing several games based on licensed properties, like a reported third Star Wars Jedi game, along with Marvel’s Black Panther and Iron Man. EA announced in 2022 that Respawn was developing three separate Star Wars games, one of which was Star Wars Jedi: Survivor. The two others were unannounced; one of those games, a first-person action game, has been canceled, according to Video Games Chronicle. “As we’ve looked at Respawn’s portfolio over the last few months, what’s clear is the games our players are most excited about are Jedi and Respawn’s rich library of owned brands,” EA entertainment and technology present Laura Miele said in a statement to the publication.

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The cuts come almost one year after EA laid off around 700 people, or 6% of its staff, in March 2023. Earlier in February of this year, The company also laid off “a small number of staff” earlier this week as it ceased operations on EA Sports MLB Tap Sports and F1 Mobile Racing. (These layoffs may be included in the 670 number announced Wednesday.) Those games are presumably part of the company’s plan to “sunset” several games, as Wilson noted in the letter to staff.

EA expects to spend $125 million to $165 million on these layoffs and other cost-cutting measures. Office space reductions will cost roughly $50 million to $60 million, while $35 million to $45 million is expected to go toward “costs associated with licensor commitments,” according to a securities document filed Wednesday. EA said it’ll spend $40 to $55 million on