According to a filing Electronic Arts filed with the Securities and Exchange Commission on Wednesday, the video game developer will lay off five percent of its personnel. The decision, which is a part of a larger restriction that will see the business reduce office space and stop working on several video games, will result in the loss of over 650 positions at EA.
With numerous layoffs rocking the video gaming business since last year, EA’s cuts are only the most recent in a long line of layoffs. More than 10,500 people who worked in the video game sector lost their employment in 2023, and in January 2024 alone, more than 6,000 people were laid off. Among the many video game businesses that have let go of employees thus far are Microsoft, Riot Games, and Unity. Sony revealed on Tuesday that it was letting go of 900 employees, or around 8% of its total workforce, from its PlayStation division.
In a memo sent to EA employees, CEO Andrew Wilson wrote that the company is “streamlining our company operations to deliver deeper, more connected experiences for fans everywhere.” EA expects to finish making the cuts by early next quarter, the memo says. The cuts, Wilson adds, will let EA focus more on its “biggest opportunities — including our owned IP, sports, and massive online communities.”
One of the games that the move will directly impact is a Star Wars first-person shooter being worked upon by Respawn, a game development studio that EA acquired in 2017, according to IGN. “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,” EA Entertainment president Laura Miele reportedly told staff in a note. “Giving fans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus.”
