EA: Big wave of layoffs and general “restructuring” for the FIFA company  

It will lay off 6% of its workforce

Electronic Arts , one of the world’s largest video game publishing companies, announced Wednesday that it will lay off 6% of its workforce , or about 800 employees , as part of a “restructuring” plan. The company also said it would shrink its office space to reduce operating costs and focus on its core strategy.

The layoffs come despite EA reporting a $1.3 billion gross profit for its latest fiscal quarter in January and despite the gaming industry experiencing record profits during the pandemic. However, EA cut its annual sales forecast after delaying the release of a game based on the Star Wars franchise, while also facing stiff competition from other publishers such as Warner which has dominated lately thanks to the huge success of Hogwarts Legacy.

EA CEO Andrew Wilson said the company will provide opportunities for affected employees to move to other projects, and where this is not possible, will provide compensation and additional benefits. On the other hand, regarding the future plans of the company, he emphasized:

Now, more than ever, we need to focus on our strategic priorities: creating games and experiences that engage massive online communities, creating amazing interactive stories, and empowering the community in and around our games, with social tools and creative tools.

For the record, EA isn’t the only tech company to announce job cuts this year, as many more giants brace for a possible economic downturn amid rising interest rates and inflation. According to data from Challenger, Gray & Christmas Inc. tech layoffs hit 63,000 in just the first two months of the year. The trend had started since 2022, while for example Meta and Amazon have already announced a second round of layoffs.