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EA will spend over $125 million laying off 5 percent of its workforce

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EA is laying off 5 percent of its workforce and moving away from licensed IPs it doesn’t believe can deliver success in a “changing industry.”

In an SEC filing, the EA Sports FC and Star Wars Jedi developer said the restructuring plan will enable it to “drive durable growth, strong cash-flow, and stockholder returns.”

EA expects to spend between $125 million to $165 million on the restructuring plan, which is expected to be “substantially complete” by December 31, 2024.

“These charges consist of approximately $50 million to $65 million associated with office space reductions, approximately $40 million to $55 million related to employee severance and employee-related costs, and $35 million to $45 million in costs associated with licensor commitments,” reads the filing.

In a business update shared with employees earlier today, EA boss Andrew Wilson spent three hefty paragraphs discussing how EA is well-positioned to achieve nebulous goals like “entertaining massive online communities” and “telling blockbuster stories” before actually stating how many jobs are at risk.

Eventually, he confirmed the company expects to make approximately 5 percent of its workforce redundant, but claimed EA will aim to help impacted team members find new roles internally before cutting jobs. He added that EA will also be optimizing its “global real estate footprint” to better support its business, sunsetting some unnamed projects, and “moving away from [the] development of future licensed IP.”

“I understand this will create uncertainty and be challenging for many who have worked with such dedication and passion and have made important contributions to our company,” wrote Wilson. “While not every team will be impacted, this is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams.”

EA previously laid off around 800 employees in March 2023, despite Wilson claiming the company was operating from a “position of strength.”

Mass layoffs have become commonplace in 2024. Major companies including Microsoft, Sony, Unity, Embracer, and many others have all cut jobs in the name of sustainability, driving growth, or supercharging shareholder value.

EA’s latest cuts only add to the wave of uncertainty that is sweeping across the game industry, leaving a trail of talented developers in its wake. 

About the Author(s)

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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