Home NEWSBusiness Electronic Arts Plans Layoffs For 5% of Workforce, Cancels ‘Star Wars’ Game

Electronic Arts Plans Layoffs For 5% of Workforce, Cancels ‘Star Wars’ Game

by Nagoor Vali


Digital Arts, which makes such video games as Madden NFL and Apex Legends, stated in the present day that it plans to put off 5 % of its staff and can discontinue work on a number of video games.

The announcement continues the continued downsizing within the gaming and tech house, a improvement that has seen 1000’s of jobs misplaced.

EA stated the layoffs are a part of a broader restructuring aimed toward supporting “strategic priorities and progress initiatives,” in keeping with a Tuesday securities submitting. EA stated in that doc that it additionally plans to cut back its workplace house footprint.

Final yr, EA sliced 800 staff, whereas Epic Video games reduce 830 jobs in September. In January, Tencent’s Riot Video games stated it could lay off 11% of its workforce and Microsoft stated it could cull 1,900 jobs from its Activision Blizzard and Xbox gaming divisions.

On Tuesday, Sony stated on Tuesday it could reduce 8% of its world workforce, amounting to round 900 jobs.

Primarily based on EA’s annual report, issued in Might of final yr, the corporate had 13,400 staff. Meaning the present cuts might quantity to some 600 jobs misplaced.

Together with the job cuts, CEO Andrew Wilson issued a company-wide letter informing employees of the writer’s restructuring. Meaning the sunsetting of some stay service titles and ceasing the event of sure initiatives.

In his letter, Wilson acknowledged that EA is restructuring to grow to be extra streamlined with a purpose to ship “deeper, extra linked experiences for followers all over the place that construct group, form tradition, and develop fandom.” He stated the corporate will probably be shifting away from licensed IPs and shutting down sure titles to shift its improvement assets.

“We’re additionally sunsetting video games and shifting away from the event of future licensed IP that we don’t consider will probably be profitable in our altering trade,” Wilson stated within the letter. “This larger focus permits us to drive creativity, speed up innovation, and double down on our greatest alternatives — together with our owned IP, sports activities, and large on-line communities — to ship the leisure gamers need in the present day and tomorrow.”

Wilson then speaks to the extent of the layoffs and the way it will work with affected staff:

“Whereas not each staff will probably be impacted, that is the toughest a part of these adjustments, and now we have deeply thought-about each choice to attempt to restrict impacts to our groups. Our main objective is to offer staff members with alternatives to seek out new roles and paths to transition onto different initiatives. The place that’s not doable, we’ll help and work with every colleague with the utmost consideration, care, and respect.”

The restructuring is predicted to be accomplished by early subsequent quarter.

Video Video games Chronicle reported Respawn’s upcoming Stars Wars first-person shooter is one title not shifting ahead.

In a press release to VGC, EA Leisure president Laura Miele stated partially, “It’s at all times laborious to stroll away from a mission, and this resolution shouldn’t be a mirrored image of the staff’s expertise, tenacity, or ardour they’ve for the sport. Giving followers the following installments of the enduring franchises they need is the definition of blockbuster storytelling and the precise place to focus.”

EA’s different upcoming licensed initiatives embody Motive’s Iron Man and Cliffhanger’s Black Panther. An EA consultant confirmed to GameIndustry.biz that each initiatives are nonetheless in improvement.

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