An Electronic Arts (EA) video game logo is seen at the Electronic Entertainment Expo
Lucy Nicholson | Reuters
Electronic Arts is cutting 6% of its workforce, equal to about 800 jobs, and reducing office space, the video game company said Wednesday.
“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,” CEO Andrew Wilson wrote in a note to employees. Layoffs are “the most difficult part, and we are working through the process with the utmost care and respect,” he wrote.
The company expects to take impairment charges ranging from $170 to $200 million, according to a filing with the SEC. EA expects the actions associated with the restructuring plan will be “substantially complete” by the end of September.
Wilson said EA would provide severance and health care to affected employees, noting that layoffs had begun earlier in the quarter.
EA had just under 13,000 employees, according to a quarterly filing in March 2022. In January, the company missed estimates on quarterly revenue and provided a bookings forecast that was weaker than expected.
Chief Financial Officer Christopher Suh said on the earnings call that EA will be “very deliberate,” with a particular focus on the “pace of hiring.”
A company spokesperson declined to comment further on Wednesday’s announcement or to provide an exact number of job cuts.
EA joins a long list of tech companies that are in downsizing mode. The economic downturn and market reversal led to mass layoffs in 2022 and a more rapid pace of cuts this year. Over 155,000 tech industry workers at more than 500 companies have lost their jobs in 2023, according to data from Layoffs.fyi.
WATCH: Tech layoffs
Source link: https://www.cnbc.com/2023/03/29/ea-laying-off-6percent-of-workforce-reducing-office-space.html