To achieve a “greater focus across our portfolio,” Electronic Arts (EA) has declared that around 6% of its worldwide workforce, or somewhere between 700-800 individuals, will be laid off, as per the company’s announcement.
According to a post on EA’s website, CEO Andrew Wilson explained that the company evaluated its forthcoming projects, reorganized some teams, and assessed its real estate needs. As a result of this review, it was determined that “approximately six percent of our company’s workforce” would be laid off.
Although Wilson did not indicate which parts of the company would be affected by the layoffs, he stated that EA would abandon projects that do not align with its strategy of “developing games and experiences that entertain vast online communities; creating blockbuster interactive storytelling; and amplifying the power of community in and around our games with social and creator tools.”
Wilson mentioned that some employees might be assigned to other projects, while others who are not reassigned would receive severance pay and additional benefits. The company has already started announcing personnel changes, which are anticipated to continue into the next fiscal year, starting in October.
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“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. These decisions are expected to impact approximately six percent of our company’s workforce. This is the most difficult part, and we are working through the process with the utmost care and respect. 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. Communicating these decisions began earlier this quarter and we expect them to continue through early next fiscal year.” Said Wilson.
The decision to lay off hundreds of employees comes despite EA’s report of a $1.3 billion gross profit for its most recent fiscal quarter, as indicated in financial statements presented to investors in January. However, even though the company experienced revenue and profit growth during the same quarterly period as the previous year, it lowered its full-year profit expectations.
Wilson announced the layoffs while acknowledging that EA is operating from a position of strength despite macroeconomic uncertainties. He noted that the company is gaining momentum, but still proceeded to announce the layoffs a few paragraphs later.
