EA to Implement Layoffs Impacting 670 Employees

Electronic Arts (EA) has announced that it will be affected by the ongoing trend of mass layoffs, with plans to lay off 5% of its global staff. With a devastating string of major layoffs afflicting the game industry, a climbing number of developers have lost their jobs in just the first few months of 2024. Within the last few days, several other studios have also announced layoffs, with a notable 900 employees being let go from PlayStation.

Mass layoffs have been plaguing game studios for the past year and a half, with around 10,000 developers losing their jobs in 2023. In only the first two months of 2024, the number of layoffs is reaching beyond 8,000, scraping dangerously close to meeting the total number from last year. Even within the last week, a massive number of developers have lost their jobs with layoffs hitting Supermassive, Playstation, and Deck Nine. The unsettling trend has both developers and gamers alike concerned about the future of beloved titles and studios.

Electronic Arts is set to cut 5% of its global staff, amounting to approximately 670 layoffs. The cuts will also impact certain games in development, as EA plans to sunset some titles to prioritize its most successful offerings. CEO Andrew Wilson reassured staff that the company is committed to transitioning affected employees to new roles and projects whenever possible. This week, along with PlayStation's mass layoff, over a thousand developers are facing job losses.

Around 670 developers to be laid off

Sunsetting of an undisclosed number of games

EA recently announced a shift in focus away from future licensed IPs. While specific projects were not identified, the cancellation of mobile games F1 Mobile Racing and MLB Tap Sports was confirmed. CEO Andrew Wilson emphasized a renewed emphasis on owned IPs, sports, and building strong online communities. Additionally, EA disclosed plans to prioritize developing titles within the Marvel and Star Wars franchises, including an upcoming Black Panther game and a new Jedi title.

EA logo in coral red on light gray speckled background - Many industry professionals have attributed the mass layoffs to overzealous hiring and spending during the COVID-19 pandemic, as many companies got used to increased consumer spending

The mass layoffs in the game industry have been linked to the excessive hiring and spending habits that developed during the COVID-19 pandemic, when consumer spending was on the rise. However, developers are now pointing out that the pandemic alone cannot explain the significant blow to the industry. Other factors such as high costs of game development, chaotic decision-making in studios, and a lack of proper planning for the industry's fluctuations are also seen as contributing to the situation. While many companies are struggling with expenses, there are some studios, like Baldur’s Gate, that are thriving and actively recruiting developers who have been laid off.

Editor's P/S:

The ongoing mass layoffs in the game industry are a sobering reminder of the volatility and precarious nature of the entertainment sector. The loss of thousands of talented developers is a tragedy for both the individuals affected and the industry as a whole. The impact on beloved titles and studios is deeply concerning, raising questions about the future of our favorite games and the creative talent behind them.

While the pandemic may have exacerbated the situation, it is clear that deeper structural issues are at play. Excessive hiring and spending during the boom times of the pandemic have left many companies vulnerable to the current economic downturn. Poor decision-making and a lack of planning have also contributed to the crisis. The industry must reassess its practices and find ways to create a more sustainable and resilient ecosystem that supports both developers and consumers.