The technology sector is going through difficult times. Large companies and startups from around the world have given the green light to layoffswhich are counted at more than 100,000 so far in 2023. We are barely in March and, with several months of the year ahead, this trend does not seem to end.
The video game industry, according to the New York Times, had so far successfully weathered massive cuts, but it is no longer the exception. Electronics Arts (EA), the publisher and distributor behind titles such as ‘Star Wars: Battlefront’, ‘FIFA 2023’ and ‘Apex Legends’, has announced that it will lay off 6% of its workforce.
Layoffs also reach the video game industry
Through a statement, which was sent to employees before being shared with the press, EA CEO Andrew Wilson announced a series of important changes to the corporate structure in view of the presentation of the financial results for fiscal year 2022 (which closes with the fourth quarter tomorrow, March 31).
In the text, Wilson says that in this new period, characterized by “macro uncertainty”, the company will focus its resources on its strategic priorities: creating more entertaining games powered by interactive narratives, among others. To do this, they will move away from products that “do not contribute” to these objectives.
With this new approach in mind, EA has begun a deep restructuring that ranges from analyzing its real estate expenses to reorganizing some teams. On this last point, precisely, the cut 6% of its workforceAlthough the exact number of employees who will be laid off has not been specified.
If we take into account last year’s earnings reports, the video game company said it had about 13,000 employees, so the current cut would translate into about 780 layoffs. “Where we can, we provide opportunities for our colleagues to transition to other projects,” added the EA CEO.
In the statement in which the layoffs have been announced, Wilson assures that “EA is operating from a position of strength” and that the company is gaining momentum with “some of the biggest and most beloved franchises in the world”. It is time to wait to find out how the business of this company will evolve.
As we said, the technology sector is submerged in a wave of massive layoffs. Companies such as Amazon, Google, HP, IBM, Meta, Microsoft, Spotify, Salesforce and Philips have announced cuts between 2022 and 2023. Although there are some exceptions such as the AI startup OpenAI and the semiconductor giant TSMC, the latter, with significant salaries.
Images: Electronic Arts (1, 2)
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