Video game company Electronic Arts will cut 5 percent of its workforce according to a report it filed with the Securities and Exchange Commission on Wednesday. More than 650 EA employees will lose their jobs as a result of the move, part of a broader cutback that will see the company cut office space and cease work on some video games.
EA’s layoffs are the latest in a long line of layoffs that have rocked the video game industry since last year. In 2023, more than 10,500 video game employees lost their jobs, and more than 6,000 people in the industry were laid off in January 2024 alone. Video game companies that have laid off workers so far include Microsoft, Riot Games, and Unity among many others. On Tuesday, Sony announced it was laying off 900 people from its PlayStation division, roughly 8 percent of the workforce.
In a memo sent to EA employees, CEO Andrew Wilson wrote that the company is “streamlining our company’s operations to deliver deeper, more connected experiences for fans everywhere.” EA expects to complete the layoffs by early next quarter, the memo said. The cuts, Wilson added, will allow EA to focus more on its “biggest opportunities – including our own IP, sports and massive online communities.”
One of the games this move will directly affect is a star Wars a first-person shooter developed by Respawn, a game development studio that EA acquired in 2017, According to to IGN. “It’s always difficult to walk away from a project, and this decision is not a reflection of the team’s talent, tenacity or passion for the game,” EA Entertainment president Laura Miele told staff in a memo. “Giving fans the next installments of iconic franchises they want is the definition of blockbuster storytelling and the right place to focus.”
Update, February 28, 2024, 5:45 PM ET: This story has been updated with more details about the cancellations star Wars game.
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