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EA is laying off 800 employees, according to SEC disclosures. The layoff will cut 8% of the company’s work as they also seek to reduce office space.
EA had only nearly 13,000, based on disclosures in March last year.
EA intends to focus on its growth opportunities and optimize its real estate portfolio.
EA is laying off 800 employees – Is EA in Trouble?
In a note to employees about the layoffs, Electronic Arts (EA) Chief Executive Officer Andrew Wilson stated that the company is still operating in a position of strength.
Wilson further indicated that the company will focus on strategic priorities like building games with large communities. EA will also look to rely on the communities to develop social and creator tools as well as build blockbuster interactive stories.
Further, the CEO added that EA is working on providing opportunities for laid-off employees to transition to other organizations.
The gaming giant will also provide adequate severance pay and extra benefits like health care and career transition to the laid-off workers.
EA started notifying staff about the layoffs early in the first quarter. The game publisher will also continue guiding and informing affected employees heading into April.
EA had initially made some layoffs, with over 200 Quality Assurance (QA) staff, such as external contractors, dismissed in February from the Baton Rouge, Louisiana Office. The QA employees were responsible for working on Apex Legends.
Is Gaming Industry in Trouble?
In 2023, the gaming industry suffered massive layoffs in Amazon (Twitch), Unity, and more companies are expected to announce layoffs.
Xbox and Riot Games are other gaming companies to lay off staff in the first quarter of 2023. The situation spells trouble for the gaming industry.
The sales decline in the sector is bad for business, alongside surging costs attributable to inflation and emerging threats from a potential global recession.
However, the video games industry remains in good health.