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EA announces layoffs of more than 650 employees

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According to a report filed with the Securities and Exchange Commission, Electronic Arts (EA) is cutting 5% of its workforce, equivalent to more than 650 laid-off employees. As a result of the move, the company will also reduce its office space and shut down some gaming projects, such as its Star Wars first-person shooter title.

What do you need to know:

  • EA sent a memo to employees communicating the cuts, which are expected to take place during the first quarter of 2024;
  • According to the company, the cuts will allow EA to focus more on its “greater opportunities — including our intellectual property, sports and large online communities”;
  • With the readjustment of expenses and plans, the Star Wars game from Respawn, a game development studio that EA acquired in 2017, was canceled. “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.,” Laura Miele, president of EA Entertainment, told the team in a note.

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We're streamlining our company's operations to deliver deeper, more connected experiences for fans everywhere.

Andrew Wilson, CEO of EA, in a memo to employees.

The dismissal at EA follows a trend across the market tech reinforced in 2023 and called the Year of Efficiency. Now, with the boom in AI, companies remain focused on realigning projects and optimizing functions.

In 2023 alone, for example, more than 10,500 video game industry workers lost their jobs. In 2024, more than 6,000 have also been laid off.

Among the gaming companies that laid off workers are Microsoft, Riot Games, Unity, among others. This week Sony announced a cut of 900 people from its PlayStation division, around 8% of its workforce. See details here!



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