FIFA Maker EA to lay off 6% of its workforce and incur up to $200 million in related costs
Electronic Arts announced on Wednesday that it would lay off about 6% of its workforce and reduce office space, making it the first major video game publisher to announce job cuts.
Tech companies led the latest round of layoffs as U.S. businesses brace for a potential economic downturn amid rising interest rates around the world.
Meta Platforms and Amazon.com announced a second round of job cuts this month. Tech layoffs hit 63,000 in the first two months of the year, according to data from Challenger, Gray & Christmas Inc.
EA, which had about 12,900 employees at the end of March last year, expects to commit between $170 million (about Rs 1,398 crore) and $200 million (about Rs 1,644 crore). rupees) in costs related to the restructuring.
“As we focus more on our portfolio, we are moving away from projects that don’t contribute to our strategy, reviewing our real estate footprint and restructuring some of our teams,” CEO Andrew Wilson said in a blog post.
EA, behind football video game franchise ‘FIFA’ and ‘The Sims’, will offer employees the opportunity to move on to other projects and, where that is not possible, provide additional severance and benefits , Wilson said.
Video game publishers are also grappling with slowing player spending in the face of decades-high inflation, a change in fortune from the meteoric growth seen during the pandemic.
Video game sales so far this year have remained flat and spending on video game content across all platforms is down 2%, according to analytics firm Circana.
Electronic Arts lowered its annual booking forecast in January after delaying the release of a game based on the “Star Wars” franchise.
Warner Bros. Discovery’s new Hogwarts Legacy game topped the video game sales charts in February, according to Circana.
© Thomson Reuters 2023
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