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EA Cuts 5 Percent Of Workforce

Electronic Arts is laying off around 5 percent of its workforce, or roughly 670 people.

In a blog post titled ‘Delivering on our ambitious growth strategy’ on EA’s website, Laura Miele, president of EA Entertainment and Technology, announced the developer’s current situation. CEO Andrew Wilson also sent a note saying that the company is “moving away from the development of future licensed IP that we do not believe will be successful in our changing industry.”

EA is cutting almost 700 jobs

Wilson’s note mentions that EA will now focus on existing properties as the move from future licensed titles is no longer in the pipeline. The upcoming Black Panther and Iron Man video games are still in development. “This greater focus allows us to drive creativity, accelerate innovation, and double down on our biggest opportunities — including our owned IP, sports, and massive online communities — to deliver the entertainment players want today and tomorrow,” said Wilson on the switch to existing IPs.

Regarding the job cuts, Wilson says they “deeply considered every option to try and limit impacts to our teams.” However, those impacted will not know until next quarter.

Earlier this week, EA laid off a “small number of staff” working on two mobile titles: EA Sports MLB Tap Sports and F1 Mobile Racing but it isn’t clear if the staff are included in the 670 people affected by the restructuring.

Electronic Arts plans to further cut costs by reducing office space. The company expects to spend between $125 million to $165 million. Of this amount, office space reductions will cost roughly $50 million to $60 million, while $35 million to $45 million is expected to go towards costs associated with licensor commitments. Additionally, EA plans to spend $40 to $55 million on employee severance, which will be in addition to the $170 million to $200 million it spent last year on its cost reduction plan. EA is looking to complete the plan by December 31, 2024.

Laura Miele then revealed several sweeping changes across EA’s studios, beginning with Respawn. The studio will focus on more Star Wars Jedi and Respawn’s “rich library of owned brands.” EA also cancelled a Star Wars FPS title to focus on new projects based on existing IPS and further support existing games. “It’s always hard to walk away from a project, and this decision does not reflect the team’s talent, tenacity, or passion for the game. Giving fans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus,” says Miele.

Battlefield’s Vince Zampella and Byron Beede remain dedicated to the series and building Battlefield’s future. Marcus Lehto has left his narrative-driven Battlefield project at Ridgeline Games as the Seattle-based studio is shuttering, with Criterion taking over the project. Some existing Ridgeline members are moving to Ripple Effect and working with DICE, Ripple, and Criterion to build on Battlefield.

EA plans to focus more on mobile games as it sees strong growth, with more resources dedicated to the platform. Properties, including EA SPORTS FC, Madden NFL, and The Sims, are doing well for EA and plan on introducing more games. Just yesterday, Sony announced it was cutting 900 jobs across Sony Interactive Entertainment with Naughty Dog, Insomniac Games, Firesprite affected, and Sony’s London studio shuttering entirely.