Electronic Arts on Wednesday announced its intention to trim 5% of its workforce as part of a comprehensive restructuring plan, which will also involve downsizing its real estate holdings.
The gaming giant, recognized for titles like “Star Wars Jedi: Survivor,” anticipates facing charges ranging from $125 million to $165 million associated with this strategic move.
Other major players in the gaming industry, including Sony, Microsoft, and Tencent-owned Riot Games, have similarly implemented significant layoffs in recent months. These decisions have been attributed to a sluggish recovery in the gaming market coupled with elevated borrowing rates.
CEO Andrew Wilson addressed the challenging nature of these changes in a letter to employees, emphasizing the company’s thorough consideration of various options to minimize the impact on its teams. While not every team will be affected, EA expects the process to be completed substantially by December 31.
Of the anticipated charges, approximately $50 million to $65 million will be linked to reductions in office space, while $40 million to $55 million will be allocated to severance and other employee-related costs.
As of March 31 the previous year, EA employed around 13,400 individuals, with 65% of its workforce located internationally, according to regulatory filings.
