Electronic Arts will eliminate roughly 5% of its workforce, a reduction likely affecting at least 600 employees at the Redwood City gaming giant known for Apex Legends and The Sims.
CEO Andrew Wilson delivered the news Wednesday in a companywide message, saying leadership had explored every avenue to soften the blow. The decision lands amid a punishing wave of job cuts sweeping through the video game industry.
EA reported 13,400 workers in March 2023, then trimmed 6% that same month. The latest round compounds those losses. Wilson framed the move as an effort to streamline operations and build deeper connections with players.
The company also filed paperwork with the SEC revealing plans to shed some real estate assets. Whether the headquarters in Redwood City will face cuts remains unclear. Spokesperson Charlie Fortescue declined to address questions about layoff locations or property reductions.
The restructuring should wrap up by late 2024, according to regulatory filings. EA currently operates 34 offices worldwide: seven across the U.S., 14 in Europe, five in Asia, six in Canada, and two in Australia. American locations include Seattle, Orlando, Austin, Los Angeles, Marina Del Rey, Sacramento, and Redwood City.
Severance costs will run between $40 million and $55 million, per the SEC filing. Wilson’s message omitted specifics about employee exit packages.
The financial picture adds context. EA generated $1 billion in profit between March and December, and Wilson collected more than $20 million in compensation during fiscal 2023. The company maintains high-profile sports partnerships, including a title sponsorship deal with Spain’s LaLiga.
Meanwhile, the broader gaming sector bleeds jobs at an alarming pace. Sony Interactive Entertainment cut 900 positions Tuesday. Unity Software slashed 1,800 roles in January, Riot Games eliminated 530, and Twitch and Discord also handed out pink slips.
The cumulative toll signals a major contraction for an industry that spent years expanding rapidly. Gaming workers now face an uncertain 2024 as companies recalibrate operations against shifting market realities.
