The gaming giant cites restructuring efforts, including workspace reductions and project refinement, for the axing of nearly 800 jobs.
Is there something in the air? Right on the coattails of Disney’s shocking layoff plans, according to The Hollywood Reporter, Electronic Arts is set to lay off six percent of its workforce, nearly 800 jobs, as part of a company restructuring. The plan, which includes workspace reductions and project refinement, will cost the gaming giant approximately $170-$200 million.
Of the restructuring efforts, CEO Andrew Wilson stated, “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.”
In an open letter to employees, who were probably less than thrilled with the news, Wilson praised company successes, yet emphasized a need for “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.”
These upcoming cuts may be explained by the company’s missed earnings expectations in the third quarter, as well as a reported decline in total net bookings. However, the situation is not completely dire for those that will be laid off; Electronic Arts will provide severance pay and other benefits to all terminated personnel. Still, we hate to see anyone lose their jobs in such a manner.
All restructuring plans are expected to be completed by September 30, with final cuts to end early in the next fiscal year.
Cybersecurity specialist by day, investigative journalist by night.
