Electronic Arts has revealed in an announcement that the company will downsize by 6% of its headcount, meaning that there will be losses in terms of 800 jobs. According to a memo sent by CEO Andrew Wilson, this is going to be part of a restructuring that will allow the company to focus on “Strategic Priorities.” This announcement doesn’t specify which jobs are getting axed; as such, we won’t know which employees will be cut off.
Electronic Arts is going to be restructured to supposedly focus on “Strategic Priorities,” according to the memo sent by CEO Andrew Wilson. This will result in cutting 800 jobs, roughly 6% of its workforce, all to reduce office space. Electronic Arts is going to provide severance and healthcare to the affected employees, noting that the layoffs began earlier in the quarter.
In a note addressed to employees regarding the situation at the end of the fiscal year, Electronic Arts CEO Andrew Wilson talks about the new focus on the company:
Now, more than ever, we must be focused on our strategic priorities: building games and experiences that entertain massive online communities; creating blockbuster interactive storytelling; and amplifying the power of community in and around our games with social and creator tools.
As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams. Where we can, we are providing opportunities for our colleagues to transition onto other projects. Where that’s not possible, we are providing severance pay and additional benefits such as health care and career transition services.
Electronic Arts is expecting to incur impairment charges of $170 million to $200 million related to the restructuring, according to an SEC filing. The impairment charges include $65 million-$70 million related to intellectual property impairment; $55 million-$65 million related to employee severance and employee-related costs; $45 million-$55 million associated with office space reductions; and $5 million-$10 million of other charges, including contract cancelations. EA said it anticipates the restructuring plan to be “substantially complete” by Sept. 30, 2023.
