Electronic Arts has announced that it will be laying off 5% of its staff, or around 670 employees, based on its stated headcount total of 13,400 in 2023. The company will also start “sunsetting” an unspecified number of games and move away from developing certain licensed IP games.
EA explained that it does not believe that some future licensed IP would be successful “in our changing industry.” Among the licenses that EA works with are Star Wars and the NFL, although it’s unclear if games related to either of those will be impacted.
“This greater focus allows us to drive creativity, accelerate innovation, and double down on our biggest opportunities,” said CEO Andrew Wilson in a press release. “Including our owned IP, sports, and massive online communities–to deliver the entertainment players want today and tomorrow.”
One game has reportedly been canceled as a part of the restructure, but there were no other specific details about what it was. However, its development team has apparently been moved to other projects.
According to an SEC filing, EA’s restructuring is estimated to cost between $125 million and $165 million, with office space reductions contributing between $50 million and $65 million alone. Employee severance and other related costs are expected to be between $40 million and $55 million, along with between $35 million and $45 million in licensor commitment costs.
Just this week, Until Dawn and The Quarry developer Supermassive Games announced that it would be laying off 90 of its employees. Sony laid off 900 developers across its first-party studios, including Naughty Dog, Insomniac Games, and Guerrilla Games. Life is Strange developer Deck Nine Games revealed it would be cutting 20% of its staff, too, as widespread layoffs continue to impac the entire video game industry.
