- Electronic Arts said Wednesday that it will lay off 6% of its workforce and reduce office space.
- “As we focus more across our portfolio, we are moving away from projects that do not contribute to our strategy,” CEO Andrew Wilson wrote in a note to employees.
The Electronic Arts (EA) video game logo appears at the Electronic Entertainment Expo
Lucy Nicholson | Reuters
Electronic Arts is laying off 6% of its workforce, roughly 800 jobs, and cutting back on office space, video game company He said Wednesday.
“As we focus more on our portfolio, we’re moving away from projects that don’t contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams,” CEO Andrew Wilson wrote. NB for employees. Layoffs, he wrote, are “the hardest part, and we work through this process with the utmost care and respect.”
The company expects to collect impairment charges ranging from $170 to $200 million, according to a filing with the Securities and Exchange Commission. EA expects that actions related to the restructuring plan will be “largely completed” by the end of September.
EA will provide severance and healthcare services to affected employees, Wilson said, noting that layoffs began earlier this quarter.
EA had just under 13,000 employees, according to a quarterly filing in March 2022. In January, the company miscalculated its quarterly revenue estimates and provided a weaker-than-expected bookings forecast.
CFO Christopher Suh said in the earnings announcement that EA will be “very deliberate,” with a particular focus on “the pace of hiring.”
A company spokesperson declined to comment further on Wednesday’s announcement or provide a specific number of job cuts.
EA joins a long list of tech companies that are in downsizing mode. The economic downturn and market reversal led to mass layoffs in 2022 and an accelerated pace of cutbacks this year. More than 155,000 tech industry workers at more than 500 companies lost their jobs in 2023, according to data From Layoffs. fyi.
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