- Share this article on Facebook
- Share this article on Twitter
- Share this article on Flipboard
- Share this article on Email
- Show additional share options
- Share this article on Linkedin
- Share this article on Pinit
- Share this article on Reddit
- Share this article on Tumblr
- Share this article on Whatsapp
- Share this article on Print
- Share this article on Comment
Electronic Arts will lay off 6 percent of its workforce, or close to 800 jobs, the video game publisher disclosed Wednesday.
This comes as part of the company’s restructuring plan, which will also include office space reductions and portfolio rationalization. In total, Electronic Arts estimates it will incur about $170 million to $200 million in charges related to the plan.
These actions are expected to be completed by Sept. 30, 2023.
In an open letter to employees, CEO Andrew Wilson praised the strength of the company, highlighting the momentum of EA Sports FIFA 2023, Apex Legends and The Sims. But he said the company will now need to focus more on “strategic priorities,” which includes “building games and experiences that entertain massive online communities; creating blockbuster interactive storytelling; and amplifying the power of community in and around our games with social and creator tools.”
“As we drive greater focus across 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,” Wilson wrote.
At the end of January, Electronic Arts said it would be cancelling two games, Apex Legends Mobile and Battlefield Mobile, after the two did not meet expectations and amid a tough mobile market. The company missed earnings expectations in the third-quarter and reported a decline in total net bookings. Executives cited the performance of new games, as well as performance in the Apex game franchise coming in lower than anticipated. The company also lowered its annual net bookings forecast.
As part of the layoff process, Electronic Arts will provide opportunities for some workers to transition to other roles. If not, Electronic Arts is providing severance pay and other benefits. The company began alerting employees earlier this quarter and expects to keep making cuts through early next fiscal year.
Sign up for THR news straight to your inbox every day