Electronic Arts (EA) is letting go of around 670 employees, constituting about 5% of its workforce, amidst ongoing layoffs in the tech and gaming sector. The California-based gaming giant, known for titles like FIFA and Madden, recently confirmed this decision as part of an approved restructuring plan detailed in a regulatory filing. The plan involves both layoffs and the closure of certain offices or facilities.
As of March 31, 2023, EA boasted a global workforce of 13,400, and the layoffs are expected to be mostly finalized by early next quarter. The company foresees incurring restructuring charges between $125 million and $165 million.
This encompasses expenses linked to office space reductions (estimated between $50 million and $65 million) and severance costs (projected to be about $40 million to $55 million).
Interestingly, this isn’t the first instance of a gaming company trimming its workforce in 2024. Riot Games initiated an 11% staff reduction in January. Additionally, Sony plans to cut 900 jobs globally, marking an 8% reduction in its gaming workforce.
In the dynamic world of gaming and technology, how will these strategic shifts influence the future landscape of the gaming industry?