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Electronic Arts to Lay Off 5% of Workforce, Scraps 'Star Wars' Game

Electronic Arts (EA), known for games like Madden NFL and Apex Legends, announced its plan to lay off five percent of its workforce and discontinue work on several projects.



This announcement is part of the ongoing downsizing trend in the gaming and tech industries, resulting in numerous job losses.


According to a Tuesday securities filing, EA stated that these layoffs are part of a broader restructuring initiative aimed at supporting strategic priorities and growth initiatives. The company also plans to reduce its office space footprint. Last year, EA reduced its workforce by 800 employees, while Epic Games cut 830 jobs in September. In January, Tencent’s Riot Games announced an 11% reduction in its workforce, and Microsoft disclosed plans to cut 1,900 jobs from its Activision Blizzard and Xbox gaming divisions.


On Tuesday, Sony revealed its plan to cut 8% of its global workforce, equating to around 900 jobs.


Based on EA’s annual report from May of the previous year, the company had 13,400 employees. This means the current layoffs could amount to approximately 600 lost jobs.


CEO Andrew Wilson issued a company-wide letter detailing the publisher’s restructuring, which includes the sunsetting of some live service titles and halting development on certain projects.


In his letter, Wilson explained that EA is streamlining operations to deliver deeper, more connected experiences for fans worldwide, fostering community, influencing culture, and expanding fandom. He mentioned the company's shift away from licensed IPs and the discontinuation of certain titles to focus resources on development.


Wilson addressed the extent of the layoffs and the company's support for affected employees:


"While not every team will be affected, this is the most challenging aspect of these changes, and we have thoroughly explored every option to minimize impacts on our teams. Our main objective is to offer team members opportunities to transition to new roles and projects. Where this isn't feasible, we will provide support and assistance to each colleague with the utmost attention, care, and respect."

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