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Madden NFL maker Electronic Arts to cut 5 percent of its workforce as gaming industry layoffs mount

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NEW YORK –

Electronic Arts plans to lay off 5 percent of its employees, making it the latest company in the gaming and tech industry to cut its workforce.

EA, the maker of lucrative gaming franchises such as Madden NFL and Apex Legends games, said the layoffs were part of a broader restructuring aimed at supporting “strategic priorities and growth initiatives,” according to a filing Tuesday. EA added that it plans to reduce its office footprint.

The company also indicated that it plans to make changes to its future content slate.

“We are also exiting games and moving away from developing future (intellectual property) licenses that we do not believe will be successful in our evolving industry,” EA CEO Andrew Wilson said in a note Wednesday. to employees included in the company contract. deposit of securities. “We are streamlining our company operations to deliver deeper, more connected experiences to fans around the world that build community, shape culture and grow fandom.”

The video game industry has shed jobs over the past year. EA itself laid off around 800 employees last year.

Epic Games cut 830 jobs in September. In January, Tencent’s Riot Games announced it would lay off 11 percent of its workforce and Microsoft said it would cut 1,900 jobs at its Activision Blizzard and Xbox gaming divisions. And electronics giant Sony announced Tuesday that it would cut 8 percent of its global workforce, which would amount to about 900 jobs.

EA said in its latest annual report, filed in May last year, that it had 13,400 employees as of March 31, 2023. That means after last year’s workforce reductions, Wednesday’s layoffs could affect more than 600 workers.

EA stock closed up almost 0.5 percent on Wednesday. The company’s shares are up nearly 27 percent compared to the same period last year.

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