EA to fire over 650 employees amid gaming industry slump
Electronic Arts (EA) is laying off 5% of its workforce, leading to over 650 employees losing their jobs. The decision is part of a larger restructuring effort that includes downsizing office space and discontinuing certain video game projects. The announcement comes two days after Sony fired 900 employees from PlayStation division. The gaming industry has seen a trend of layoffs, with more than 10,500 workers losing their jobs in 2023 and over 6,000 in January 2024 alone.
CEO Andrew Wilson explains EA's streamlining efforts
EA CEO Andrew Wilson, in a memo to employees, said that the company aims to "streamline our company operations to deliver deeper, more connected experiences for fans everywhere." The layoffs are set to be completed by early next quarter, allowing EA to concentrate on its "biggest opportunities—including our owned IP, sports, and massive online communities." Other major gaming companies like Microsoft, Riot Games, Unity, and Sony have also faced significant layoffs recently.
EA to cancel Star Wars game
One project impacted by EA's restructuring is Star Wars first-person shooter being developed by Respawn, a studio EA acquired in 2017. EA president Laura Miele addressed cancelation in a note to staff, stating, "It's always hard to walk away from a project, and this decision is not a reflection of the team's talent, tenacity, or passion they have for the game." Miele highlighted the importance of focusing on delivering "the next installments of the iconic franchises" that fans desire.
