There is no week of this year that does not start with a string of technological layoffs. No company is safe, no matter how big it is. There are layoffs at Microsoft, at Sony, at Embracer Group, and now at Electronic Arts.
Electronic Arts, creator of successful sagas such as FIFA, Battlefield or The Sims, has announced today that it plans to lay off 5% of its employees and stop working on several games.
The announcement is a continuation of the staff reduction that is taking place in the technology and video game sector, where thousands of jobs have been lost.
Justifying layoffs, as always
EA states that the layoffs are part of a broader restructuring aimed at supporting “strategic priorities and growth initiatives,” according to a statement of values filed on Tuesday. In that document, EA also states that it plans to downsize its offices.
Last year, EA laid off 800 employees, while Epic Games cut 830 jobs in September. In January, Tencent’s Riot Games announced it would lay off 11% of its workforce and Microsoft said it would eliminate 1,900 jobs from its Activision Blizzard and Xbox gaming divisions.
On Tuesday, Sony announced it would cut 8% of its global workforce, which amounts to about 900 jobs.
According to EA’s annual report, published in May of last year, the company had 13,400 employees. This means that the current layoffs could result in the loss of about 600 jobs.
Goodbye to secret projects that were already underway
Along with the staff cuts, CEO Andrew Wilson has sent a letter to the entire company informing them of the publisher’s restructuring. This means the disappearance of some live service titles and the cessation of development for certain projects.
In his letter, Wilson states that EA is restructuring to be more agile in order to offer “deeper and connected experiences for fans around the world that build community, shape culture, and grow fandom”. The company will move away from licensed IPs and close some titles to reallocate their development resources.
It is expected that the restructuring will be completed at the beginning of the next quarter. Video Games Chronicle has reported that the upcoming first-person shooter Stars Wars from Respawn is one of the titles that will not move forward.
In a statement to VGC, EA Entertainment President Laura Miele said in part: “It is always difficult to leave a project, and this decision is not a reflection of the team’s talent, tenacity, or passion for the game. Offering fans the next installments of the iconic franchises they desire is the definition of box office success and the right place to focus on.”
