Andrew Wilson
Photo Credit: Christian Petersen/Getty Images
Electronic Arts (EA), a leading video game publisher, has announced a significant restructure that will result in the loss of approximately 5% of its workforce. The job cuts, equating to more than 650 positions, form an integral part of this profound transformation.
In a detailed piece of communication to employees, EA’s CEO Andrew Wilson voiced his regret regarding the inevitable personnel impacts. Despite these disheartening measures, Wilson underscored that the company had painstakingly examined various alternatives before opting for the current course of action.
Wilson explained the crux of the reshaping was to adapt to the rapidly evolving gaming industry and to refocus on their strong suits that include their owned Intellectual Property (IP), sports games, and online communities. The company hopes to further foster innovation, develop creative prowess, and enhance their user experience on a deeper level.
In a subsequent declaration to stakeholders, the company estimated an incurred cost of $125 – $165 million relating to the restructure. These expenses encompass charges attributed to office space reductions, employee severance and related costs, along with charges related to licensing commitments.
Paramount among the major shifts the company announced was the cancelation of a highly-awaited Star Wars first-person shooter game. Laura Miele, EA’s President of Entertainment and Technology, affirmed in a memo that the decision was not a reflection of the team’s abilities, but rather a strategic shift in focus to new projects based on their owned brands.
Miele informed that EA would be discontinuing some licensed mobile games, such as Kim Kardashian Hollywood and a Lord of the Rings game. This was a part of streamlining the company operations and shifting focus to their proprietary games.
The cancellation of the Star Wars game comes hot on the heels of Disney making a substantial investment in Epic Games with plans to create a new universe featuring Star Wars and Marvel characters.
Throughout the entire communication, Wilson repeatedly emphasized EA’s commitment to navigating through this challenging phase. The CEO further expressed his gratitude to his team and reaffirmed his belief in their capacity for overcoming obstacles. He ultimately signed off his memo with appreciative words aimed at those who have contributed to EA’s journey thus far.
