The video game company Electronic Arts will lay off 5 percent of its workforce, according to a report filed with the Securities and Exchange Commission on Wednesday. More than 650 EA employees will lose their jobs as a result of the move, part of a broader restriction that will see the company reduce office space and end work on some video games.
EA's cuts are the latest in a long list of layoffs that have rocked the video game industry since last year. In 2023, more than 10,500 video game workers lost their jobs, and more than 6,000 people in the industry were laid off in January 2024 alone. Video game companies that have laid off workers so far include Microsoft, Riot Games, and Unity, among many. others. On Tuesday, Sony announced it would lay off 900 people from its PlayStation division, about 8 percent of its workforce.
In a memo sent to EA employees, CEO Andrew Wilson wrote that the company is “simplifying our company operations to deliver deeper, more connected experiences to fans around the world.” EA expects to finish making the cuts early next quarter, the memo says. The cuts, Wilson adds, will allow EA to focus more on its “largest opportunities, including our intellectual property, sports and massive online communities.”
One of the games that the measure will directly affect is a Star Wars first-person shooter being worked on by Respawn, a game development studio that EA acquired in 2017, according to IGN. “It's always difficult to abandon a project, and this decision is not a reflection of the team's talent, tenacity, or passion for the game,” EA Entertainment president Laura Miele reportedly told staff in a memo. “Giving fans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus.”
Update, February 28, 2024, 5:45 pm ET: This story has been updated with more details about what was canceled. Star Wars game.
