Video game industry giant Electronic Arts presents a series of cuts. The company plans to reduce office space and lay off 6 percent. all your employees.
Electronic Arts, the creator of ia Series “Fifa”, “The Sims” or “Mass Effect” intend to cut by 6 percent. all your employees. EA representatives did not specify how many people will leave their jobs, but based on the latest reports, it can be assumed that about 730 employees will be affected by collective layoffs.
EA Cuts Costs
EA said the layoffs began early this quarter and are expected to continue into the start of the next fiscal year, which starts in April. The Redwood City, California-based company also said it was cutting real estate costs and restructuring some teams.
“Now more than ever, we need to focus on our strategic priorities,” EA CEO Andrew Wilson said Wednesday in a statement prepared for publication on the staff blog. “These priorities align our investments with opportunities to make the greatest impact.”
The gaming industry is no longer protected
EA became the first major video game publisher to announce massive layoff plans. So far, the industry has been largely immune to the layoffs that have occurred at many tech companies, including Amazon.com Inc., Microsoft Corp. and parent company Facebook Meta Platforms Inc.
EA shares fell about 12 percent in February. after the company reported a rare error in its fiscal third quarter forecasts and plans to cancel two mobile games. Wilson said at the time that the company is “taking strategic steps to assess our cost structure as we navigate the current macro environment.”
Hard times for game developers
The video game industry has had a rocky start to the new year after cuts in player spending wiped out significant growth achieved during the pandemic. Other major publishers, including Ubisoft Entertainment SA and Take-Two Interactive Software Inc., have also made strategic changes recently.
In its securities filing, EA said it estimates it will incur costs of between $170 million and $200 million from layoffs and other restructuring efforts, which are expected to be largely completed by the end of September.
Source: Wprost
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