Electronic Arts Layoffs: 700 Jobs Cut as Star Wars Game Gets Axed
Electronic Arts Inc. (EA) recently announced a significant workforce reduction, with approximately five percent of its employees, totaling almost 700 individuals, facing job cuts. This decision marks EA’s second mass layoff in under a year, sending ripples through the gaming industry. The announcement coincides with the cancellation of games and the closure of at least one development studio.
EA’s CEO, Andrew Wilson, communicated the layoffs via an internal email, emphasizing a strategic shift towards delivering enhanced gaming experiences. Wilson’s statement, posted on the company’s blog, mentioned a focus on community-building and fan engagement, framing the layoffs as part of a broader organizational optimization effort.
While EA aims to support affected employees by exploring alternative roles within the company, the reality suggests many will be let go. This move follows a similar downsizing initiative last March, underscoring EA’s ongoing restructuring efforts.
In addition to the layoffs, EA disclosed plans to discontinue games and scale back on licensed intellectual properties (IPs). This shift aligns with a strategic pivot towards maximizing opportunities in owned IPs, sports, and online communities. Notably, EA emphasized its commitment to ongoing projects like Black Panther and Iron Man, while shelving the Star Wars first-person shooter under development by Respawn Entertainment.
The decision to move away from licensed IPs extends beyond console and PC gaming to EA’s mobile gaming division. Titles like Kim Kardashian Hollywood and Lord of the Rings: Heroes of Middle-earth are among those facing discontinuation, signaling a consolidation of resources around high-potential titles.
Despite EA’s efforts to refocus on owned IPs, not all internal studios survived unscathed. Ridgeline Studio, a U.S.-based developer working on a Battlefield universe project, faced closure. The fate of its projects now rests with Criterion Games, highlighting the fluid nature of EA’s portfolio management.
This news arrives on the heels of PlayStation’s own restructuring, with around 900 job cuts announced recently. The broader context reveals a concerning trend within the gaming industry, with thousands of job losses recorded in recent months. This wave of layoffs follows a challenging year for the industry, underscoring the need for resilience and adaptability.
As the gaming landscape continues to evolve, companies like EA face the dual challenge of strategic repositioning and maintaining a supportive environment for their workforce. The repercussions of these decisions extend beyond the boardroom, impacting individuals and communities across the industry.
