Electronic Arts, the popular video game company, has announced its plans to reduce its workforce by about 6%, which translates to roughly 800 jobs. Along with the job cuts, the company also plans to reduce its office space. EA CEO Andrew Wilson stated in a note to employees that the company is focusing on projects that contribute to their strategy and is reviewing their real estate footprint while restructuring some of its teams.
The restructuring plan is expected to result in impairment charges ranging from $170 to $200 million, according to a filing with the Securities and Exchange Commission (SEC). The company anticipates that the actions associated with the restructuring plan will be “substantially complete” by the end of September.
The downsizing move by EA follows a trend of other tech companies also implementing cost-cutting measures. The global economic downturn and market reversal have led to mass layoffs in 2022, with an even more rapid pace of cuts this year. As per data from Layoffs.fyi, more than 155,000 tech industry workers at over 500 companies have lost their jobs in 2023.
While EA has not disclosed which specific projects will be affected by the restructuring plan, it is clear that the company is prioritizing projects that contribute to their strategy. With the global pandemic having impacted the gaming industry positively in terms of revenue, it is interesting to see EA take such a step at a time when the industry is seemingly thriving. The restructuring plan is expected to help the company streamline its operations and focus on more profitable areas of its business.