In a continuing trend, EA joins the growing list of companies downsizing their workforce to cut costs, reduce office space, and allay investor fears in the face of an impending recession. The downsizing would impact 800 employees, stated the video game company on Wednesday.
“As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy. We are presently reviewing our real estate footprint, and restructuring some of our teams,” wrote the company’s CEO, Andrew Wilson. He further wrote that layoffs are “the most difficult part, and we are working through the process with the utmost care and respect.”
According to EA, the restructuring plan is expected to be “substantially complete” before the end of September. Employees laid off will receive severance and healthcare, stated Wilson. He added that downsizing had started earlier this year.
EA has a workforce of approximately 13,000 employees as per data obtained from the company’s quarterly filing in 2022. Earlier this year, the gaming giant couldn’t achieve its quarterly target and revealed a bookings estimate that was lower than expected.
The organisation’s CFO, Christopher Suh, stated that the company will be “very deliberate” henceforth, and will particularly maintain a keen eye on the “pace of hiring.”
Various tech giants like Microsoft, Google, and Meta, among others, have been firing employees in droves since 2022, with the pace picking up in 2023. According to data from Layoffs.fyi, more than 155,000 employees at about 500 tech companies have been made redundant in 2023.
(Information sourced from CNBC)
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