EA loses 5% of its workforce and axes 670 jobs

EA loses 5% of its workforce and axes 670 jobs
Images via EA

Written by 

Tom Chapman

Published 

28th Feb 2024 22:15

It seems like no one is safe right now, as Electronic Arts is the latest gaming giant to slash its workforce. In a week that's already seen Sony axe 900 jobs and a year that's seen Microsoft lose 1,900, even the biggest are seemingly crumbling under their own weight.

EA announces 670 job losses

The Sims 4 Tragic Clown
Click to enlarge
Image via Maxis

According to GamesIndustry.biz, EA is facing 670 layoffs from across multiple departments. This equates to around 5% of its workforce. Known for everything from The Sims to EA Sports FC, it's also known for newer franchises like Star Wars' Jedi games. It's currently unclear how future projects will be affected.

A recent report gave a headcount of 13,400 at the end of March 2023, which leads to the unfortunate number of 670. This is part of a grand restructuring pan that includes closing offices and ending some live games. Those affected will apparently be informed by early next quarter.

CEO Andrew Wilson said EA is "moving away from development of future licensed IP that we do not believe will be successful in our changing industry," suggesting we might not be getting many more Star Wars games from the publisher. There's a glimmer of hope that the planned Iron Man and Black Panther games are still in development. 

Wilson added, "This greater focus allows us to drive creativity, accelerate innovation, and double down on our biggest opportunities — including our owned IP, sports, and massive online communities — to deliver the entertainment players want today and tomorrow."

He maintains that EA "deeply considered every option to try and limit impacts to our teams" but was left with no other choice. The layoffs will apparently cost EA between $125 million and $165 million, with the shuttering of office spaces being the biggest expenditure. 

Players are worried for the industry

Sign Up To Our Newsletter

Get exclusive news, content, and discounts sent directly to your inbox

You've joined our newsletter. Thank you!
Sorry, there has been an issue in subscribing to the newsletter.

 

We've previously seen a deluge of redundancies in the gaming journalism scene, and with it going hand in hand with games themselves, things are likely to only get worse. Publishers are trying to tighten their purse strings, and whether it's a case of commissioning too many games or spiralling budgets, everyone is being hit hard.

Responding to the news, fans were concerned about where things were heading. One wrote, "What is going on with the video game industry?" while another added, "Industry is cooked man." Sadly, there seems to be no end in sight for mass layoffs.

Someone concluded, "Man EA really dropped the ball on that deal they had for Star Wars lmfaoooooo. Moving away from licensed IP..? So are we never getting a good Battlefront game....?" While a focus on your own IPs is likely a good thing, it's another grim development in 2024's already disappointing gaming roadmap.

Tom is Trending News Editor at GGRecon, with an NCTJ qualification in Broadcast Journalism and over seven years of experience writing about film, gaming, and television. With bylines at IGN, Digital Spy, Den of Geek, and more, Tom’s love of horror means he's well-versed in all things Resident Evil, with aspirations to be the next Chris Redfield.

Trending
Human Fall Flat 2 delay may make it first confirmed 2026 release
PlayStation finally confirms when Trophies will arrive on PC
Take-Two Interactive hit with layoffs despite upcoming GTA 6 release
Esports World Cup announces recording-breaking $60 million prize pool
Looks like EA's Black Panther and Iron Man games are going open-world