Electronic Arts Announces Workforce Reduction of 5% Amid Industry Shifts

Written by Henrik Rothen

Feb.29 - 2024 11:39 AM CET

Photo: ricochet64 / Shutterstock.com
Photo: ricochet64 / Shutterstock.com
Electronic Arts Announces Workforce Reduction of 5% Amid Industry Shifts.

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Electronic Arts (EA) has announced a significant reduction in its workforce, planning to lay off approximately 5% of its employees, which translates to around 670 people.

This decision is part of the company's broader initiative to cut costs and restructure its operations, according to The Independent.

Andrew Wilson, EA's Chief Executive, communicated these changes in an email to the company's staff. He explained that EA would shift its focus towards nurturing its existing, popular franchises and massive online communities, moving away from the development of new and future games.

This strategic pivot involves halting some games currently in development and canceling others that the company predicts will not perform well in the evolving gaming industry.

Wilson highlighted the company's intention to concentrate on its "owned IP and sports" titles, including the EAFC football game series, previously known as Fifa. He noted that this refocusing is a response to an "accelerating industry transformation" characterized by a shift in player preferences towards larger, established intellectual properties and a desire for more immersive, community-oriented gaming experiences.

"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," Wilson stated.

He acknowledged the challenges and uncertainty this restructuring would cause among EA's dedicated staff, stressing that the decision to downsize was made after careful consideration of all possible alternatives to minimize impact.

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