The company will cut 5% of its workforce, or about 670 employees

An Electronic Arts video game logo is seen at the Electronic Entertainment Expo.

Lucy Nicholson | Reuters

Electronic Arts announced Wednesday that it will cut 5 percent of its workforce, part of a plan that includes reducing office space and ending work on some video games.

EA employed 13,400 workers as of the end of March 2023, according to its most recent annual filing with the US Securities and Exchange Commission in May. This means that the cuts could affect around 670 jobs.

The company’s announcement marks the latest job cuts among video game developers in recent months, continuing a broader trend of significant downsizing across the tech industry.

On Tuesday, Sony said it would lay off about 900 employees at its PlayStation division, or 8% of its workforce. Last month, Microsoft cut 1,900 jobs in its gaming division three months after acquiring Activision Blizzard, and Tencent’s Riot Games cut 11 percent of its workforce.

EA CEO Andrew Wilson wrote in a memo to employees Wednesday that the video game company is “streamlining our company’s operations to deliver deeper, more connected experiences for fans everywhere.”

The layoffs will support EA’s “strategic priorities and growth initiatives,” according to a filing Wednesday with the SEC. The company expects its restructuring plan to be “substantially complete” by the end of December.

“We continue to optimize our global real estate footprint to best support our business,” Wilson wrote in his Wednesday note. “We are also sunsetting games and moving away from developing future licensed IP that we do not believe will be successful in our changing industry.”

Wilson added that the cuts will allow EA to focus more on its “biggest opportunities – including our own IP, sports and massive online communities.”

During the company’s third-quarter earnings call last month, Wilson said the company would focus on continuing to invest in its existing game franchises with large online audiences, including Apex Legends, Battlefield, EA Sports FC, Madden NFL and The Sims.

— CNBC’s Steve Kovacs contributed to this report.

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