Electronic Arts to Reduce Workforce by 5%

Electronic Arts has announced a significant restructuring plan, which involves laying off around 5% of its workforce, approximately 670 employees, as the company focuses on its most promising business segments. The move is part of a broader strategy to prioritize owned intellectual properties, sports, and online communities. According to EA's CEO, Andrew Wilson, the company is abandoning the development of future licensed IP that is deemed unlikely to succeed in the evolving gaming industry. This shift in strategy led to the cancellation of one title, with the affected teams being reassigned to other projects. The decision to reduce reliance on licensed properties, such as Disney's Star Wars and Marvel, is intended to foster creativity, accelerate innovation, and capitalize on EA's core strengths. The restructuring plan, which includes office closures and the discontinuation of certain live games, is expected to incur costs ranging from $125 million to $165 million. The company aims to complete the process of informing affected employees by early next quarter.