EA plans to cut 5% of its workforce, part of a plan that includes reducing office space and sunsetting some games; EA employed 13,400 workers as of March 2023

CNBC 2024-03-01 Alex Koller

Context & Ripple Effects

EA’s latest restructuring follows its earlier workforce and office-space reduction plan, indicating that cost control has remained a recurring operating priority rather than a one-off adjustment.

The move also fits a broader publisher retrenchment cycle: Epic’s large staff reduction and Take-Two’s planned downsizing show that portfolio and staffing reviews were affecting several major game companies.

First-order effects

EA employees face job reductions, while its office footprint is set to shrink as the company reorganizes.
Players and teams attached to the games being sunset face service closures and a narrower active portfolio.

Second-order effects

EA will have to concentrate development, live-service support and marketing on fewer titles, raising the importance of the games it retains.
Comparable cuts at Epic and Take-Two increase pressure on major publishers to scrutinize headcount, physical space and weaker game portfolios.

Third-order effects

If repeated across publishers, restructuring could leave the sector with fewer simultaneously supported games and more capital directed toward proven franchises.
The pattern points to a more disciplined operating model in games, though it does not establish whether cuts will produce durable creative or financial gains.

The trend: Large game publishers are pairing workforce reductions with portfolio and real-estate rationalization to reset their cost bases.

Discussion

@bravointel @bravointel on x
NEWS: As part of today's layoffs at EA, EA is shutting down Battlefield studio Ridgeline Games. The studio was working on narrative experiences for Battlefield Battlefield's narrative work is now being lead by Criterion Games (via IGN) [image]
@game_fabricator Marcus Lehto on x
Gut punched to see EA lay off my team. So many very talented devs who were incredibly valuable to the Battlefield franchise.
@jfragen_ Jordan Fragen on x
Buckle up, 2024 is shaping up to be rough for game devs. Over the last week, roughly 2,000 gaming jobs were cut across @EA, @Sony, @ESL @Faceit, @SuperMGames and more. It isn't even March and we've lost ~80% of 2023's layoff total per @dekaf's videogamelayoffs.
@edzitron Ed Zitron on x
I feel like if you make a layoff of more than 100 people you should have to talk to 20% of them on the phone and listen to them rant at you and be legally required to take it
@sweetpotatoes Nicole Carpenter on x
The thing I keep thinking about with all these layoffs is how studies have shown that layoffs don't actually save that much money. EA expects to spend up to $165 million on this, on top of the ~$200 million from last year's cuts. https://www.polygon.com/... [image]
@wario64 @wario64 on x
EA laying off around 670 employees. “We are also sunsetting games and moving away from development of future licensed IP that we do not believe will be successful in our changing industry. This greater focus allows us to drive creativity, accelerate innovation, and double down...…
@gibiz @gibiz on x
EA laying off around 670 as it moves away from future licensed IP to double down on owned IP, sports, and online communities https://www.gamesindustry.biz/ ...
@culturecrave @culturecrave on x
EA has canceled Respawn's Star Wars FPS It was rumored to be a Mandalorian bounty hunter game (via @IGN) [image]
r/ironman r on reddit
Iron Man game continues development amid EA layoffs and restructuring
r/gamingnews r on reddit
A note from Laura Miele, President of EA Entertainment and Technology
r/SWGalaxyOfHeroes r on reddit
EA to Lay Off Around 670 Workers, Sunsetting Games, ‘Moving Away From Future Licensed IP’ - IGN
r/vfx r on reddit
EA to Lay Off Around 670 Workers, Sunsetting Games, ‘Moving Away From Future Licensed IP’ - IGN
r/technews r on reddit
EA is laying off over 650 employees | An upcoming Star Wars first-person shooter was canceled as a result of the move.
r/swtor r on reddit
EA is laying off 5% of its workforce, are “also sunsetting games and moving away from development of future licensed IP that we do not believe will be successful in our changing industry.”
r/SuperMegaBaseball r on reddit
EA is laying off 5% of their workforce (approximately 670 employees)
r/technology r on reddit
EA to lay off 5% of workforce, or about 670 employees
r/XboxSeriesX r on reddit
EA to Lay Off Around 670 Workers, Sunsetting Games, ‘Moving Away From Future Licensed IP’ - IGN
r/kindafunny r on reddit
EA to Lay Off Around 670 Workers, Sunsetting Games, ‘Moving Away From Licensed IPs’ - IGN
r/F1Game r on reddit
EA to Lay Off Around 670 Workers, closing F1 Mobile Racing

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