Angela B. Tech 02.28.2024 23:Feb PM EST

Electronic Arts to Lay Off 670 Employees, Sunset Video Game IPs

Not long after the announcement of Sony conducting layoffs globally, Electronic Arts is also following suit as it plans to reduce its workforce, ultimately affecting about 670 employees. On top of that, the development of some games will also be discontinued.

(Photo : David Paul Morris/Bloomberg via Getty Images)

EA Layoffs

This won't be the first time that Electronic Arts will conduct layoffs in the span of a year. The recent job cuts will affect around 670 employees, which comprise approximately 5% of its workforce based on the 13,400 workers as of March 2023.

EA CEO Andrew Wilson said that the layoffs were brought on by the attempt to streamline company operations "to deliver deeper, more connected experiences for fans everywhere," as reported by CNBC, which in turn will support "strategic priorities and growth initiatives."

Just as others are doing, Electronic Arts aims to go through a restructuring plan, which according to a filing with the SEC, will be "substantially complete" by December. This will not only affect employees but video games developed by the company as well.

"We are also sunsetting games and moving away from development of future licensed IP that we do not believe will be successful in our changing industry," said the CEO, as they continue to optimize their global real estate footprint "to best support our business."

It's unknown which titles will be discontinued, but the most popular IPs will remain such as Apex Legends, Battlefield, Madden NFL, The Sims, and more. By dropping other titles, the company will be able to focus more on its "biggest opportunities."

Last Year's EA Layoffs

In the wave of job cuts back in 2023, Electronic Arts laid off around 6% of its workforce. Wilson said then that the reduction was due to the company reevaluating its investment strategy as well as reducing office space.

"As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams," the CEO expressed.

Last year had a much higher estimated count of employees with around 780 jobs impacted, as reported by The Verge. The employees were provided with severance pay, healthcare, and transition services as they searched for employment elsewhere.

According to reports, this cost the company around $170 million to $200 million. While it's undisclosed how this eventually affected the company's profitability, it seems that it has worked given that EA is conducting layoffs once again.

Sony's Recent Layoffs

Sony is also going through a reduction in workforce that affects its video game studios, even resulting in the one based in London closing down. Some of the studios in question are behind the popular video game exclusives that PlayStation had to offer.

Naughty Dog, for instance, is among those studios, known for its franchises like The Last of Us and Uncharted. Insomniac Games, known for the Marvel's Spider-Man franchise, as well as Guerilla Games, known for the Horizon titles, are also affected by the wave of layoffs.