EA joins PlayStation and Microsoft in reducing workforce by 5%
Electronic Arts will cut 5 percent of its workforce as part of a restructuring plan that also includes reducing real estate, the company said Wednesday, as the video game industry struggles to grow amid high interest rates.
The company, which makes video games such as “Star Wars Jedi: Survivor,” expects to pay about $125 million to $165 million in expenses for the move.
Riot Games, owned by Sony, Microsoft and Tencent, has also laid off thousands of workers in recent months due to a slow recovery in the gaming market amid high interest rates.
“While not all teams will be affected, this is the most difficult part of these changes and we have deeply considered all options to try to limit the impact on our teams,” CEO Andrew Wilson said in a letter to employees.
Of the costs, about $50 million to $65 million would be related to reducing office space, and $40 million to $55 million would be related to severance and other employee-related costs, the company said.
Actions related to the plan are expected to be mostly completed by December 31.
On March 31 of last year, the company had approximately 13,400 employees, of which 65% were located internationally, according to the official announcement.
In January, EA had predicted fourth quarter bookings below estimates.
