Electronic Arts are the most recent gaming industry corporation to announce massive layoffs as part of its restructuring efforts. This terrible trend has been occurring more frequently in recent years.
The video game developer and publisher EA is planning to restructure the business, which will result in the company laying off a sizeable chunk of its workers. This news is consistent with other recent developments in the gaming and technology industries. This most recent round of layoffs comes just a few weeks after Electronic Arts cut off more than 200 quality assurance testers working on the publisher’s free-to-play first-person shooter, Apex Legends.
The latest round of layoffs follows a trend several developers and publishers repeated over the past few months. This is unfortunate for the people affected. The year started with reports of layoffs at 343 Industries, the company developing Halo Infinite. Other large firms swiftly followed suit as they adjusted to an uncertain economic environment and changes brought about by the increase of remote employees. Even though video game players have not been significantly impacted by the widespread layoffs that have been taking place in the industry so far, it seems likely that they will be in the future when these firings start to influence games that are currently in the production stage.
According to recent information published by GamesIndustry.biz, Electronic Arts (EA) will eliminate approximately 6% of its total workforce in the next months. This will result in the loss of approximately 775 employees. As the news of the layoffs broke, EA CEO Andrew Wilson attempted to put a positive gloss on the mass firings by sending a memo to staff in which he declared that the company is still “working from a position of strength.” This statement came after the news of the layoffs broke. Those affected by the layoffs will be offered severance money and “added perks” such as health care and assistance finding new employment. Wilson stated that EA’s priorities moving forward will be creating communities around titles with “blockbuster interactive storytelling” and “making the most of those communities with social and creator tools.” These layoffs were part of refocusing the company’s strategic goals and were implemented in conjunction with reorganizing the company’s organizational structure.
Wilson added that to achieve these new objectives. The company would be “moving away from projects that do not contribute to our strategy,” restructuring some existing teams, and reviewing the company’s real estate holdings. He said this would be done simultaneously with the company reviewing its real estate holdings. It is likely that Electronic Arts (EA), similar to other corporations that have permitted staff to work from home in recent years, has expensive commercial leases for facilities that are either partially or entirely vacant. The corporation has decided to implement these cost-cutting measures since it is now facing fresh competition in areas of the gaming market that it had previously dominated. One example is what will happen when the young EA Sports FC game competes against the next FIFA game.
Electronic Arts achieve its objective of reorganizing the corporation to adapt to the shifting landscape of the business world. Due to these layoffs, the company may become more competitive and a better creator of quality games. Nevertheless, given that the gaming industry appears to be heading toward more widespread layoffs, including those at esports organization The Guard, this most recent round of layoffs may be a warm-up act for more significant ones that are still to come.
Source: GamesIndustry.biz
