In news that echoes similar stories playing out across the gaming and tech industry, developer and publisherEAis set to lay off a significant portion of its workforce as the company looks to restructure. This latest round of layoffs comes only weeks afterEA laid off over 200 QA testersworking on the publisher’s free-to-play shooterApex Legends.
Unfortunately for the affected employees, this latest round of layoffs follows a pattern that has been repeated by multiple developers and publishers in recent months. The year began with news oflayoffs atHalo Infinitedeveloper 343 Industries, with other major companies quickly following suit as they adjusted to an uncertain economic environment and changes brought about by the growth of remote workers. While gamers have remained mostly unaffected by these industrywide layoffs so far, it seems almost inevitable that the ripple effect of these firings will eventually be felt as they begin to impact titles already in development.
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In news reported by GamesIndustry.biz, it’s been revealed thatEAwill be laying off roughly 6% of its total workforce in the coming months, which equates to around 775 jobs. Following news of the layoffs, EA CEO Andrew Wilson attempted to put a positive spin on the mass firings in a note to employees where he stated that the company is still “operating from a position of strength.” Affected employees are being offered severance pay and “additional benefits such as health care and career transition services.” The layoffs were part of a refocusing of the company’s strategic goals, with Wilson stating that EA’s priorities moving forward will be creating communities around titles with “blockbuster interactive storytelling” and “making the most of those communities with social and creator tools.”
In pursuit of these new goals, Wilson added that the company will be “moving away from projects that do not contribute to our strategy” while restructuring some existing teams and reviewing the company’s real estate holdings. Like other companies who’ve allowed employees to work from home in recent years, it’s likely that EA still has pricey commercial leases for properties that may now be partially or wholly vacant. The cost-cutting moves come as the company also faces new competition in areas of the gaming market where it had previously dominated, like what is set to occur when the fledglingEA Sports FCgoes up againstthe nextFIFAgame.
IfEAcan succeed in its goal of restructuring the company in the face of a changing business environment, then these layoffs have the potential to make the company both more competitive and a better producer of quality games. But in a gaming industry where mass firings are seemingly becoming more common, even extending tolayoffs at Esports organization The Guard, this latest round of cuts could just be an opening act for larger ones yet to come.
