EA revealed significant restructuring plans, which entail approximately 670 employees, accounting for 5% of its workforce, being laid off. Alongside this restructuring, the company revealed its future business strategies.
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UKRAINE - 2021/04/23: In this photo illustration, Electronic Arts (EA) logo of a US video game company is seen on a smartphone and a pc screen.
Laying Off Over 700 Employees
Electronic Arts (EA) is implementing significant layoffs affecting over 650 employees, with the cancellation of an upcoming Star Wars first-person shooter game as a direct consequence. The decision was revealed in a report submitted to the Securities and Exchange Commission.
The layoffs represent approximately 5% of EA's total workforce and are part of a broader restructuring initiative that includes reducing office space and discontinuing development on certain video game projects.
These layoffs add to a wave of job cuts that have affected the video game industry since the previous year. In 2023 alone, more than 10,500 video game workers lost their jobs, with an additional 6,000 job cuts reported in January 2024.
In a message distributed among EA staff, CEO Andrew Wilson outlined the company's plans to optimize our operational structure to provide globally enriched, more integrated experiences for fans.
According to the memo, EA anticipates completing the restructuring by the beginning of the next quarter. Wilson noted that these adjustments will enable EA to concentrate on its primary areas of growth, such as our proprietary IP, sports, and extensive online communities.
Several major players in the industry, including Microsoft, Riot Games, and Unity, have implemented layoffs. Sony also announced that it would be laying off 900 employees from its PlayStation division, constituting around 8% of its workforce.
Discontinuing Star Wars Game
After Wilson disclosed the cuts earlier today, EA Entertainment president Laura Miele followed up with a message to employees, elaborating on EA's future business strategies.
Miele revealed that as part of the company's ongoing emphasis on its proprietary brands and bolstering existing games, EA will be discontinuing development on an early-stage Star Wars FPS action game.
The decision to discontinue the project is challenging, yet it's important to acknowledge the team's skill, determination, and passion for the game. Emphasizing blockbuster storytelling and meeting fan expectations with iconic franchises remains the focal point for EA's future endeavors.
While not much is known about the Star Wars FPS, there were rumors about a Mandalorian protagonist. The future of EA's Star Wars strategy game is also uncertain.
This move by EA reflects the industry's shift towards large open-world games, thriving communities, and live service experiences.
Also Read: EA Confirms Upcoming Iron Man Game Now in Early Pre-Production Stage
According to sources at IGN, the team originally dedicated to this project will be mostly redirected to other endeavors such as Apex Legends, Iron Man, Black Panther, and Jedi.
Despite EA's pivot towards prioritizing its intellectual property (IP), the Star Wars: Jedi series will persist, with EA affirming plans for a third installment. Additionally, EA remains committed to its longstanding partnership with Disney/Marvel.
Related Article: Star Wars The Mandalorian Game Now Under Development, But Which Studio?
