Electronic Arts announced Wednesday that it will cut 5% 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 U.S. Securities and Exchange Commission in May. That means the layoffs may affect about 670 jobs.
The company’s announcement marks the latest headcount reduction 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 in its PlayStation division, or 8% of its workforce. Last month, Microsoft cut 1,900 jobs across its gaming unit three months after it acquired Activision Blizzard, and Tencent’s Riot Games slashed 11% of its workforce.
EA CEO Andrew Wilson wrote in a memo to employees on Wednesday that the video game company is “streamlining our company operations to deliver deeper, more connected experiences for fans everywhere.”
The cuts will support EA’s “strategic priorities and growth initiatives,” according to a Wednesday filing with the SEC. The company expects its restructuring plan will be “substantially complete” by the end of December.
“We are continuing 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 development of future licensed IP that we do not believe will be successful in our changing industry.”
Wilson added that the cuts will enable EA to focus more on its “biggest opportunities — including our owned 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 gaming franchises attracting large online audiences, including Apex Legends, Battlefield, EA Sports FC, Madden NFL and The Sims.
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