EA has announced it’s laying off 6% of its employees and undergoing restructuring. The news comes via an official EA blog post, also shared internally with employees, and EA said it had already begun notifying staff of layoffs in early 2023.
Workers affected will continue to receive layoff notices until the beginning of the new fiscal year starting in April. SEC documents show that EA had 12,900 employees as of March 2022, suggesting the 6% amounts to about 774 employees being affected.
EA boss Andrew Wilson told staff that the company will prioritize “building games and experiences that entertain massive online communities, creating blockbuster interactive storytelling, and amplifying the power of community in and around our games with social and creator tools.”
As part of those new goals, Wilson said that the company is reducing its office spaces, pivoting away from projects that “do not contribute to [the] strategy,” and also restructuring teams.
“This is the most difficult part, and we are working through the process with the utmost care and respect. Where we can, we are providing opportunities for our colleagues to transition onto other projects,” Wilson said. “Where that’s not possible, we are providing severance pay and additional benefits such as health care and career transition services.”
EA also filed an 8-K form–a notice required when companies make major changes that shareholders need to know about–to the Securities and Exchange Commission, and the company said the restructuring should end by September. In the 8-K form, the company also said it expects to “incur approximately $170 million to $200 million in charges.” These charges are related to intellectual property impairment, employee severance and employee-related costs, office space reductions, and contract cancellations.
EA’s restructuring plans come after it laid off hundreds of Apex Legends QA testers in February and cancelled multiple projects earlier in 2022, including a single-player game set in the Titanfall and Apex Legends universe. EA also made the decision to sunset the Apex Legends mobile game, now scheduled to shut down on May 1.
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