Following a decision made last March to reduce its workforce by six percent, EA has announced another round of layoffs affecting approximately 5 percent of its staff, totaling around 670 employees. This move comes as EA shifts its focus away from “future licensed IP” towards its “owned IP, sports, and massive online communities.”
CEO Andrew Wilson conveyed this decision to staff via email, stating that the layoffs are part of an ongoing effort to “optimize our global real estate footprint to best support our business.”
Wilson emphasized that EA intends to streamline its operations and discontinue the development of future licensed IP deemed unlikely to succeed in the evolving industry landscape. Instead, the company will prioritize its owned IP, sports, and online communities.
Wilson acknowledged the difficulty of these changes, recognizing the dedication and contributions of the affected employees. He assured that EA’s primary goal is to provide opportunities for affected team members to transition to other projects within the company. Where transition isn’t feasible, EA pledges to support affected colleagues with care and respect.
Communication of these layoffs to staff has already commenced, with the process expected to be largely completed by early next quarter. This announcement follows a previous round of layoffs in March of last year, which impacted approximately 775 individuals, as well as further layoffs at Codemasters, a studio owned by EA, in December.
Despite the strategic shift away from licensed IP, EA has confirmed ongoing development of five high-profile licensed games, including two Marvel projects and three Star Wars titles.
However, Laura Miele, president of EA Entertainment and Technology, disclosed in a separate communication to employees that this shift has led to the cancellation of a Star Wars FPS project by Respawn Entertainment, reportedly based on the Mandalorian.
EA will be winding down Ridgeline Games, with its single-player Battlefield game now under the purview of Criterion. Marcus Lehto, founder of Ridgeline and co-creator of Halo, recently announced his departure from the company.
These layoffs contribute to a challenging year for the games industry, with over 7,500 job losses occurring in less than two months. This figure surpasses the significant layoffs witnessed throughout 2023.
In the current week alone, Sony announced 900 global layoffs, Supermassive Games laid off 90 employees, Deck Nine Studios confirmed a 20 percent reduction in its workforce, and reports of job cuts emerged at Cloud Imperium Games and Die Gute Fabrik, the latter halting production entirely.
