Electronic Arts is the latest company to announce significant layoffs, with a notice that they would be reducing their workforce by 5%, or an estimated 670 people.
CEO Andrew Wilson announced the layoffs in a letter to employees that was also shared by EA online. Wilson cited an “industry transformation” where player needs have been changing, and stated that the company would be “moving away from development of future licensed IP that we do not believe will be successful in our changing industry” and refocusing on owned IP, sports, and online communities moving forward.
“Fans are increasingly engaging with the largest IP, and looking to us for broader experiences where they can play, watch, create content, and forge deeper connections,” Wilson said, in statements similar to other companies in this position that have decided to focus on making more sequels, spinoffs, and expanding content related to their most successful projects. However, Wilson also claims that this move should boost creativity and innovation.
2024 is just two months in and there have already been thousands more jobs lost in the games industry. EA says that affected employees have started to be notified but it could take up to early in the next quarter to fully decide and notify all the employees that will be losing their jobs.
Laura Miele, President of EA Entertainment and Technology, also sent notice to employees that the company shared. In this, Miele confirmed that Respawn was working on a Star Wars FPS action game, which has now been canceled. Respawn will also be focusing on owned IP while continuing to support its released titles, which include 2023’s Star Wars Jedi: Survivor.
Miele cited Respawn’s Jedi games as among “the games our players are most excited about” so it might be a narrowing of licensed works and not necessarily an end to it. Miele does say that “giving f ans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus”.
Battlefield studio Ridgeline Games is also being shut down by this round of layoffs, although that studio’s project, a narrative campaign set in the Battlefield universe, will continue under another team.
