Electronic Arts will cut 5% of workers amid gaming industry slump

Electronic Arts intends to cut 5% of its workforce, joining the ranks of gaming and tech companies that have recently downsized.

The gaming giant, known for franchises like Madden NFL and Apex Legends, stated in a securities filing on Tuesday that the layoffs are part of a broader restructuring aimed at supporting "strategic priorities and growth initiatives." Additionally, EA plans to reduce its office space and hinted at making alterations to its upcoming content lineup.

“We are also sunsetting games and moving away from development of future licensed (intellectual property) that we do not believe will be successful in our changing industry,” EA CEO Andrew Wilson said in a memo to employees on Wednesday that was included in the company’s securities filing.

Last year, EA already underwent a similar move, letting go of approximately 800 employees. Other notable companies in the gaming industry, including Epic Games, Tencent’s Riot Games, Microsoft (Activision Blizzard and Xbox divisions), and Sony, have also implemented significant layoffs recently, showcasing a trend in the sector.