Electronic Arts lays off 700 workers after latest quarterly summary

Electronic Arts will lay off more than 700 employees — 6% of the video game publisher’s worldwide workforce of roughly 12,900 — CEO Andrew Wilson said on Wednesday.

According to January financial statements, EA’s latest quarter reported a $1.3billion gross profit. The dismissals are despite these numbers. However, EA also reported a lower full year profit expectation despite higher revenue and profit over the same quarter from 2022.

“Even amidst macro uncertainty, EA is operating from a position of strength,” Wilson said in announcing the layoffs. He said EA is “gaining momentum,” but still announced the layoffs a few paragraphs later.

Wilson did not specify which segments of the company would be impacted by the layoffs; he said only that EA will pull away from projects that don’t align with its strategy: “building games and experiences that entertain massive online communities; creating blockbuster interactive storytelling; and amplifying the power of community in and around our games with social and creator tools,” he said.

Wilson called specifically out The Sims 4 EA Sports FIFA 23 Apex LegendsTheir success. It’s likely the company will focus on support for Madden 23, Battlefield 2042As well as a variety of other topics. Star Wars Jedi: SurvivalIt will be available for download at the end April. Maxis, an EA developer is working on it. Sims 5, surely a key project in EA’s portfolio.

Electronic Arts says that already Battlefield 1943, Battlefield: Bad CompanyPlease see the following: Battlefield 2: Bad Company will be removed from online stores in April, but these catalog reductions don’t seem to be related to the layoffs.

Wilson said some workers may be reassigned to other projects; those who aren’t will get severance pay and “additional benefits.” The company began announcing personnel changes “earlier this quarter,” which are expected to continue into “early next fiscal year,” which starts in October. EA dismissed 200 employees. Apex LegendsAccording to Kotaku, February saw QA testers.

EA’s significant layoffs follow a number of others by its industry peers: 400 Twitch employees were let go among Amazon’s recent termination of 9,000 employees. Microsoft fired 10,000 employees earlier this year. This reportedly had an impact on studios such as StarfieldBethesda Softworks is the developer Halo Infinite developer 343 Industries. Elsewhere, Take-TwoUnity, Unity, as well as several other companies, have also followed the lead and laid off employees, many citing macroeconomic uncertainty.

Large companies often attribute these types of layoffs to slowing growth. (EA also stated it was “reviewing” its real estate investments.) Such layoffs may not actually cut costs, some experts say — and the dismissals may simply be companies “copying” their peers, according to The Verge. EA wrote that the layoffs will cost it between $170 million and $200 millions in a financial statement published today.