US-based video game publishing giant Electronic Arts has joined the list of firms that are reducing their workforce in cost-cutting measures.
According to a report by The Hollywood Reporter, Electronic Arts has told its employees it will be shedding about 5% of its workforce or more than 650 jobs.
“While not every team will be impacted, this is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams,” EA CEO Andrew Wilson wrote in a memo to staff.
“Our primary goal is to provide team members with opportunities to find new roles and paths to transition onto other projects. Where that’s not possible, we will support and work with each colleague with the utmost attention, care, and respect,” the letter further said, adding that communications regarding the plan have already begun and will be largely completed by early next quarter.
The company’s rationalisation plan includes a reduction in real estate as well.
The publishing giant estimated that the restructuring plan will incur approximately $125 million to $165 million in total charges in connection with the plan. These charges consist of approximately $50 million to $65 million associated with office space reductions, approximately $40 million to $55 million related to employee severance and employee-related costs, and $35 million to $45 million in costs associated with licensor commitments.
The rationalisation plan is expected to be substantially complete by December 31, 2024.
As of March 31 last year, the company reportedly had about 13,400 people.
Electronic Arts, Inc. engages in the provision of digital interactive entertainment. It develops and delivers games, content, and online services for Internet-connected consoles, mobile devices, and personal computers.
The company was founded by William M. Hawkins III and William Gordon in 1982 and is headquartered in Redwood City, CA.
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Published: 29 Feb 2024, 01:59 PM IST