An Electronic Arts (EA) online game emblem is seen on the Electronic Entertainment Expo
Lucy Nicholson | Reuters
Electronic Arts is reducing 6% of its workforce, equal to about 800 jobs, and decreasing workplace house, the online game firm mentioned Wednesday.
“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,” CEO Andrew Wilson wrote in a word to staff. Layoffs are “the most difficult part, and we are working through the process with the utmost care and respect,” he wrote.
The firm expects to take impairment prices starting from $170 to $200 million, in response to a submitting with the SEC. EA expects the actions related to the restructuring plan shall be “substantially complete” by the top of September.
Wilson mentioned EA would offer severance and well being care to affected staff, noting that layoffs had begun earlier within the quarter.
EA had slightly below 13,000 staff, in response to a quarterly submitting in March 2022. In January, the corporate missed estimates on quarterly income and offered a bookings forecast that was weaker than anticipated.
Chief Financial Officer Christopher Suh mentioned on the earnings name that EA shall be “very deliberate,” with a selected concentrate on the “pace of hiring.”
An organization spokesperson declined to remark additional on Wednesday’s announcement or to offer a precise variety of job cuts.
EA joins an extended record of tech firms which can be in downsizing mode. The financial downturn and market reversal led to mass layoffs in 2022 and a extra speedy tempo of cuts this yr. Over 155,000 tech business employees at greater than 500 firms have misplaced their jobs in 2023, in response to knowledge from Layoffs.fyi.
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Source: www.cnbc.com