Andrew Wilson, the CEO of Electronic Arts, announced this Wednesday that he will fire approximately 5% of the workforce of the company. Although the executive has not specified the exact number of people affected by this decision, the American network CNBC indicates that the video game developer employed 13,400 people in March 2023, so the cut could be around 670 jobs.
The movement of those responsible for franchises such as ‘Need for Speed’, ‘The Sims’, ‘Mass Effect’, ‘Apex Legends’, ‘Star Wars’ and ‘FIFA’ occurs in the midst of a complex scenario for the industry. So far this year, more than 8,000 dismissals have materialized. Unity Software, for example, laid off 1,800 people in January and Sony Interactive Entertainment laid off 900 people just over 24 hours ago.
EA reorganizes for the future
According to an official statement, EA continues to reorganize to meet its strategic priorities. In this sense, they say, they have been working to “optimize” their global real estate presence, something intended to reduce operating costs. Additionally, the company is taking a new development approach. They say they are moving away from future licensed IPs that they believe will not be successful.
This does not mean that the company is pausing its work in the world of video games. On the contrary, they say that the new dynamic consists of promoting creativity and innovation in projects of their own intellectual property (without a license). External projects include Disney’s ‘Star Wars’ and Marvel’s ‘Iron Man’ and ‘Black Panther’, but we are not sure if these will be affected.
“I understand that this will create uncertainty and be a challenge for many who have worked with such dedication and passion and made important contributions to our company,” said Wilson, who has not provided details about the restructuring in the press release, but the company has done so in a filing with the United States Securities and Exchange Commission (SEC).
GamesIndustry.biz notes that the company will allocate between $40 and $55 million in severance costs for the cuts. It also plans to spend an additional $35 to $45 million on expenses associated with the layoffs. EA had already laid off 6% of its staff in a similar move in March last year.
