Electronic Arts (EA), a leading company in the gaming industry, recently announced that it will be cutting 5% of its workforce, equating to approximately 670 employees. This decision has been reported as a response to evolving customer demands and a renewed focus by the company. In a memo to the staff, EA’s CEO, Andrew Wilson, stated the company would also cease development on a number of unspecified games, and scale back on their real estate holdings. More details can be found here.
In addition to the workforce reductions, EA disclosed it will be “moving away from development of future licensed IP that we do not believe will be successful in our changing industry.” This move signifies a strategic shift in prioritizing potentially successful intellectual property (IP).
The Redwood City, California-based company underwent an operational restructuring in mid-2023, during which top executive positions underwent changes and two new divisions were created. The recent decisions taken by EA are viewed as further steps in their ongoing strategy to adapt to industry changes.