Tech layoffs happen everywhere, as Electronic Arts, alias EA Sports is going to cut its workforce by 6%. Not only this, they’re going to reduce their office space office.
CEO Andrew Wilson informed staff about this tech layoff saying that “As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams”. “the most difficult part, and we are working through the process with the utmost care and respect.” He continued, as in most tech layoffs in big organizations happens.
According to a filing with the SEC, the company anticipates incurring impairment costs of between $170 and $200 million. By the end of September, EA anticipates that the restructuring plan’s related actions will be “largely complete.”
When was the layoffs plan started?
Wilson, CEO EA Sports, talking about EA tech layoffs said these tech layoffs had started earlier in the quarter and that EA would offer severance and health care to affected workers.
Over 13,000 people worked for EA, according to a quarterly report from March 2022. The company’s expectation for quarterly revenue was off in January, and its bookings forecast was worse than anticipated. On the earnings call, Chief Financial Officer Christopher Suh stated that EA will be “extremely methodical,” with a focus on the speed of recruiting.
A firm representative declined to elaborate on Wednesday’s announcement or to give an exact number of jobs that will be eliminated in this layoff.
EA joins a lengthy list of tech firms that are currently undergoing downsizing. This year, job cuts are happening more quickly than they did in 2022. This happened due to the market slump and economic crisis. According to layoff.fyi, more than 155,000 workers from 500 different tech firms lost their jobs in 2023 due the tech layoffs.