Video game giant Electronic Arts (EA) has announced plans to lay off over 650 employees, which amounts to about 5 percent of its workforce. The decision comes as part of a company-wide restructuring effort to optimize its global operations and focus on owned intellectual properties (IP), sports, and online communities.
CEO Andrew Wilson explained that the restructuring plan will result in charges of $125 million to $165 million. The costs will cover office space reductions, employee severance packages, and commitments to licensors. Additionally, EA will be canceling a highly anticipated Star Wars first-person shooter game and shifting its focus towards new projects based on owned brands.
The move to halt development on the Star Wars game coincides with Disney’s recent major investment in Epic Games, a decision that likely influenced EA’s strategy going forward. In addition to canceling the Star Wars game, EA will also be discontinuing licensed mobile games such as Kim Kardashian Hollywood and a Lord of the Rings title.
Despite the layoffs, Wilson expressed his gratitude towards the impacted employees and pledged to provide support during the transition. EA’s goal with the restructuring is to streamline operations and invest in projects that will drive long-term success for the company. Time will tell how these changes will shape the future of EA and its gaming portfolio.
