EA to cut 5% of workforce

EA to cut 5% of workforce

US publishing giant Electronic Arts is cutting five per cent of its staff around the world.

In an SEC filing, the company told investors that it was implementing a restructuring plan that would see it cut down on office spending, as well as reduce "costs associated with licensor commitments". That five per cent reduction in staff likely comes to roughly 670 people based on the 13,400-person workforce the company boasted of in March 2023.

EA reckons that it will spend between $125 million and $165 million on this restructuring plan. That includes $50 million-to-$65 million in cutting office space, $40 million-to-$55 million on employee severance and between $35 million and $45 million due to licensor commitments.

In a letter to staff, CEO Andrew Wilson said that it was halting work on some games and "moving away" from licensed IP that it doesn't think will be successful. A curious thing to say when EA is working on titles for both Star Wars and Marvel.

"This greater focus allows us to drive creativity, accelerate innovation, and double down on our biggest opportunities — including our owned IP, sports, and massive online communities — to deliver the entertainment players want today and tomorrow," Wilson wrote.

"Lastly, we are streamlining our company operations to deliver deeper, more connected experiences for fans everywhere that build community, shape culture, and grow fandom.

"In this time of change, we expect these decisions to impact approximately five per cent of our workforce. I understand this will create uncertainty and be challenging for many who have worked with such dedication and passion and have made important contributions to our company. While not every team will be impacted, this is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams. Our primary goal is to provide team members with opportunities to find new roles and paths to transition onto other projects. Where that’s not possible, we will support and work with each colleague with the utmost attention, care, and respect. Communicating these impacts has already begun and will be largely completed by early next quarter."

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.