Electronic Arts, better known as EA, announced this morning that it would be laying off approximately 5% of its workforce. These layoffs come alongside a reduction in real estate as the company aims to reduce some of its expenditures amid high interest rates. It is worth noting that the company expects to report a net income of US$1.145 billion-US$1.274 billion by the end of Q3 FY 2024 (ending March 31, 2024).
“Our incredible teams delivered a strong Q3, entertaining hundreds of millions of people across our portfolio, driving deep engagement and record live services” – EA CEO, Andrew Wilson
Despite these reported high earnings, with EA SPORTS FC proving to be particularly lucrative, the company seeks to cut around 670 jobs from a reported workforce of 13,400.
Electronic Arts also seeks to depart from the development of licensed IP, with the unannounced Star Wars FPS from Apex Legends developer, Respawn Entertainment, being seemingly cancelled as a result. Meanwhile, EA’s Black Panther and Iron Man games remain in development.
Understand EA has cancelled Respawn's unannounced Star Wars first-person shooter
— Andy Robinson (@Andy_VGC) February 28, 2024
Just last year, the company laid off 6% of its workforce which was around 775 people, meaning that EA has been responsible for over 1,500 job cuts within twelve months.
