Over 800 Jobs, Or 6% Of Total Workforce To Be Axed At Electronic Arts

The video game giant Electronic Arts said on Wednesday that it would be eliminating 800 employees, or 6% of its workforce.

“As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams,” CEO Andrew Wilson wrote in a note to employees. Layoffs are “the most difficult part, and we are working through the process with the utmost care and respect,” he wrote.

According to a filing with the SEC, the company anticipates incurring impairment costs of between $170 and $200 million. By the end of September, EA anticipates that the restructuring plan’s related actions will be “largely complete.”

Wilson noted that layoffs had started earlier in the quarter and that EA would offer severance and health care to affected workers.

Over 13,000 people worked for EA, according to a quarterly report from March 2022. The company’s expectation for quarterly revenue was off in January, and its bookings forecast was worse than anticipated.

On the earnings call, Chief Financial Officer Christopher Suh stated that EA will be “extremely methodical,” with a focus on the “speed of recruiting.”

A firm representative declined to elaborate on Wednesday’s announcement or to give an exact number of jobs that will be eliminated.

EA joins a lengthy list of tech firms that are currently undergoing downsizing. This year, job cuts are happening more quickly than they did in 2022 due to the market slump and economic crisis. According to data from Layoffs.fyi, about 155,000 employees in the tech sector lost their jobs in 2023 at more than 500 organizations.

(Adapted from Variety.com)


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