Electronic Arts is laying off six percent of its workforce, which translates to around 800 employees, the video game publisher disclosed yesterday.
This large dismissal of jobs comes despite the company achieving a $1.3 billion gross profit reported through financial statements by EA for its latest fiscal quarter. That being said, the company did lower its full-year profit expectations, despite profit and revenue increases over the same quarterly period from 2022.
The newest round of layoffs comes during the same month in which EA laid off over 200 QA testers working on the company’s highly popular shooter Apex Legends.
This large number of layoffs—about 775 jobs lost or six percent of EA’s total workforce which is around 12,900 employees worldwide—comes as a decision that is meant to accelerate optimal restructuring.
“Even amidst macro uncertainty, EA is operating from a position of strength,” CEO Andrew Wilson said in his announcement of the layoffs. He added that EA is “gaining momentum,” despite the continuous layoffs that have been taking place throughout the month.
“As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams,” Wilson said in an update to employees. Layoffs are the “most difficult part, and we are working through the process with the utmost care and respect,” he continued.
The company is expecting to take impairment charges which range from $170 to $200 million, according to a filing with the SEC. EA fully expects that the actions associated with the restructuring plan will be “substantially complete” by the end of September.
Even though Wilson didn’t specify the exact departments that the layoffs are affecting, he said it will provide “opportunities for our colleagues to transition onto other projects” where possible. The company already started notifying affected workers earlier this quarter and said it expects to “continue through early next fiscal year.” The gaming company also said affected workers will receive severance pay, healthcare, and transition services.
This latest round of layoffs follows a pattern that has been repeated by multiple publishers and developers in recent months, with the year beginning with news of layoffs at 343 Industries, the Halo Infinite developer, and other companies quickly following the trend in midst of fluctuating and uncertain economic environments.
