Electronic Arts Announces Workforce Reduction of 5% Amidst Broader Tech and Gaming Sector Layoffs

Electronic Arts Announces Workforce Reduction of 5% Amidst Broader Tech and Gaming Sector Layoffs. Electronic Arts is reducing its workforce by roughly 5%, translating to about 670 positions, amid ongoing layoffs across the technology and gaming industries. This move comes after a period of significant hiring growth in recent years. The company announced this decision through a regulatory filing, outlining a restructuring plan that also involves shutting down certain offices or facilities. As of March 31, 2023, Electronic Arts employed around 13,400 individuals worldwide.

CEO Andrew Wilson expressed that not all teams would be affected but acknowledged the difficulty of the decision, emphasizing efforts to minimize the impact on staff and provide opportunities for those affected to transition to new roles or projects. The company aims to complete most layoffs by the beginning of the next quarter.

Electronic Arts anticipates incurring charges between $125 million and $165 million due to this restructuring, with $50 million to $65 million expected for office space reductions and $40 million to $55 million for severance and other employee-related expenses.

Electronic Arts Announces Workforce Reduction of 5% Amidst Broader Tech and Gaming Sector Layoffs

This news follows Sony’s announcement of cutting about 900 jobs from its PlayStation division, representing around 8% of its global workforce, attributing the decision to industry changes. The technology sector has seen a wave of layoffs, with Microsoft announcing nearly 2,000 job cuts following its acquisition of Activision Blizzard and Riot Games, the developer behind “League of Legends,” reducing its staff by 11% earlier in the year. Despite these cuts, most large tech firms remain significantly larger than their pre-pandemic sizes, a period marked by heightened hiring activity in the sector.

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