Mar 30, 2023 11:45:00

Electronic Arts dismisses about 800 people, 6% of employees, to reduce office space

Electronic Arts (EA), a global game publisher, has announced a restructuring plan that includes about 800 job cuts, equivalent to 6% of the workforce.

An update on our people and business

https://www.ea.com/news/update-to-our-business-march-2023

EA layoffs: company to cut 800 employees, or 6% of workforce

https://www.cnbc.com/2023/03/29/ea-laying-off-6percent-of-workforce-reducing-office-space.html

According to EA, the cost of the plan is $ 170 million (about 22.6 billion yen) to $ 200 million (about 26.6 billion yen). Of this, the portion related to impairment of intellectual property is $ 65 million (about 8.63 billion yen) to $ 70 million (about 9.29 billion yen), and the portion related to employees such as retirement benefits is $ 55 million ( About 7.3 billion yen) to 65 million dollars, office space reduction related from 45 million dollars (about 5.97 billion yen) to 55 million dollars, overhead expenses from 1 million dollars (about 133 million yen) to 10 million dollars (approximately 1.33 billion yen).

Actions related to the plan will be completed by the end of September 2023.

In a message to employees, EA CEO Andrew Wilson said that '

EA SPORTS FIFA 23 ', which aims to be the biggest title in the history of the franchise, ' Apex Legends ', which is moving toward the 4th anniversary event, and ' The The Sims ” and other titles such as “EA continues to deliver high-quality games and great content in the world’s largest and most beloved franchise.”

EA SPORTS™ FIFA 23 - Official Site
https://www.ea.com/ja-jp/games/fifa/fifa-23

While driving greater concentration across these portfolios, he said, he will cut off projects that don't contribute to the strategy and reassess the real estate footprint.

For personnel reductions equivalent to 6% of employees, we will provide eligible persons with the opportunity to transition to other projects as much as possible, and if it is difficult to do so, retirement allowances and additional benefits of health care and career transition services It is said that it is planning to The decision has already been communicated in stages since January 2023 and is expected to continue until the beginning of the next fiscal year.

In May 2022, it was reported that Apple, Disney, and Amazon were considering acquiring EA. EA is said to prefer a merger over an acquisition, but has yet to make an official comment on the matter.

Report that Apple, Disney, Amazon, etc. are considering acquiring EA of Apex Legends - GIGAZINE