Electronic Arts Cuts 300-400 Jobs, Cancels Game Projects Amid Challenges

Electronic Arts Inc. has announced significant restructuring measures, including the layoff of hundreds of employees and the cancellation of a highly anticipated game project. The company, headquartered in Redwood City, California, has decided to cut between 300 to 400 positions, with approximately 100 of these layoffs occurring at its subsidiary, Respawn Entertainment. As of March 2024, the company had around 13,700 employees.

Justin Higgins, a spokesperson for Electronic Arts, stated that these adjustments are part of the company's ongoing focus on long-term strategic priorities. The goal is to integrate teams more effectively and allocate resources to drive future growth. The company has been facing challenges, including the underperformance of its latest football game, EA Sports FC 25, which led to a reduction in its fiscal year's booking expectations. Additionally, the company scaled back its BioWare division after the release of Dragon Age: Dreadwolf, citing that the game's sales were 50% lower than anticipated.

Respawn Entertainment, known for its popular titles such as Apex Legends and the Star Wars Jedi series, has also made significant changes. The company announced the cancellation of two projects in their early development stages and made targeted team adjustments. One of the canceled projects, codenamed R7, was a first-person shooter set in the Titanfall universe. Respawn Entertainment has confirmed that it will continue developing the next installment in the Star Wars Jedi series and will release a new season for Apex Legends, along with a comprehensive update.

This is not the first time Electronic Arts has undertaken significant layoffs. In February 2024, the company announced plans to reduce its workforce by approximately 5%, following a 6% reduction in March 2023. These measures reflect the company's efforts to streamline operations and focus on projects that align with its strategic goals. The recent layoffs and project cancellations underscore the challenges faced by the gaming industry, where companies must continually adapt to changing market conditions and consumer preferences.