International
EA Will Layoff 5% of Their Work Force
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Electronic Arts (EA) has announced a reduction in its workforce, amounting to approximately 5% of its employees, resulting in around 670 job losses. This decision was disclosed alongside plans to conclude certain intellectual properties (IPs) and implement other business modifications.
As of March 2023, EA boasted a workforce exceeding 13,000 individuals. The news of the layoffs was conveyed to employees through a memo by CEO Sam Wilson. In the memo, Wilson emphasized the company's aim to streamline operations to provide more immersive and interconnected experiences for fans worldwide. Furthermore, he noted EA's strategic focus on owned IP, sports, and expansive online communities.
While acknowledging the challenges and uncertainties these layoffs present, Wilson expressed gratitude for the dedication and contributions of the affected employees. He stated that the decision was made after careful consideration of various options to minimize the impact on teams.
The CEO indicated that the staff reduction process is expected to be finalized by early next quarter.
EA's downsizing aligns with a broader trend of contraction within the industry. Sony recently announced a workforce reduction of about 8%, while ESL FACEIT and Microsoft also implemented layoffs. Riot Games, too, downsized its workforce by over 10% last month.
The prevalence of layoffs across the technology and gaming sectors reflects ongoing challenges despite the initial surge in demand during the pandemic. Companies like EA are now grappling with economic uncertainties and the return to normalcy, prompting strategic shifts to focus on core titles and essential operations. Riot Games exemplifies a similar approach, reducing involvement in certain games while reinforcing their core offerings.
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