Electronic Arts lays off 700 workers after latest quarterly recap

Electronic Arts will lay off more than 700 employees – 6% of the video game publisher’s worldwide workforce of about 12,900 – CEO Andrew Wilson said on wednesday.

The mass layoffs come despite the $1.3 billion gross profit EA reported for its latest fiscal quarter, according to financial report given to investors in January. Even so, the company at the time lowered its full-year profit expectations, despite a quarter-on-quarter increase in revenue and profit since 2022.

“Even amid macro uncertainty, EA is operating to its strengths,” Wilson said in announcing the layoffs. He said that EA was “gaining momentum”, but still announced the layoffs a few paragraphs later.

Wilson did not specify which parts of the company would be affected by the layoffs; he just said that EA will pull out of projects that don’t fit its strategy: “building games and entertainment experiences for large online communities; create blockbuster interactive stories; and amplify the power of community in and around our games with social tools and creators,” he said.

Wilson specifically appeals The Sims 4, EA Sports FIFA 23, And top legend for their success. It is likely that the company will focus on supporting Madden 23, Battlefield 2042and more, as well as Star Wars Jedi: Survivor once launched at the end of April. EA developer Maxis is also working on The Sims 5definitely an important project in EA’s portfolio.

Electronic Arts said that Battlefield 1943, Battlefield: Bad companyAnd Battlefield: Bad Company 2 will be removed from online stores in April, but this category cut does not appear to be related to layoffs.

Wilson said some workers may be reassigned to other projects; who do not receive severance pay and “supplementary benefits”. The company began announcing staffing changes “early this quarter,” which is expected to continue “early next fiscal year,” which begins in October. EA is leaving. 200 top legend QA testers in February, according to Kotaku.

EA’s significant layoffs follow several other layoffs by peers: 400 Twitch employees laid off of Amazon’s 9,000 recent layoffs. Microsoft lays off 10,000 workers early in the year, which is said to have influenced studios like star school developer Bethesda Softworks and Infinite aura developer 343 Industries. In other places, Take two, Uniteand several others have followed suit with layoffs, most citing macroeconomic uncertainty.

Big companies often blame these types of layoffs for slowing growth. (EA also says it’s “reviewing” its real estate investments.) Some experts say such layoffs may not actually cut costs — and layoffs may just simply because companies “copy” their peers, according to The Verge. EA said it expected the layoffs to cost about $170 to $200 million. in a financial document published today.

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