After Sony and Activision, EA to lay off 5% of its workforce

In the latest series of developments in the gaming world, EA recently announced that it would be cutting its workforce by 5% or roughly 670 employees, given the company last reported 13,400 workers. Just last year, EA laid off 800 employees.

EA’s CEO, Andrew Wilson, in an email to employees, wrote,

We are also sunsetting games and moving away from development of future licensed IP that we do not believe will be successful in our changing industry. This greater focus allows us to drive creativity, accelerate innovation, and double down on our biggest opportunities — including our owned IP, sports, and massive online communities — to deliver the entertainment players want today and tomorrow.

In this time of change, we expect these decisions to impact approximately 5 percent of our workforce

At this point, no specific details have emerged as to which teams and divisions will be affected by the layoffs, though Wilson, in the memo, states that not every team will be impacted. Also, reports suggest that EA will be handing out $40-55 million in severance packages.

In a memo published on the official website, Laura Miele, President of EA Entertainment and Technology, confirmed that EA will be cancelling its under-development Star Wars game to align with the market dynamics and user interests.

EA will now be focused on its owned IP, sports, and massive online communities, which it calls the biggest opportunities.

EA is not the only gaming company that’s been facing troubles. Yesterday, Sony downsized its PlayStation workforce by 900. Last month, after the merger, Microsoft released 1900 Activision employees.

It’s expected that more companies will announce layoffs in the coming days to better align with their goals, optimize operations, and boost revenue.

What’s your take on this latest layoff trend emerging in the gaming world? Share with our readers in the comments section.