Electronic Arts lays off 6 percent of staff after "strong" profits

Electronic Arts is celebrating its strong sales quarter by laying off 6 percent of its workforce, or around 800 employees. 

CEO Andrew Wilson confirmed the news during a recent earnings call, saying it was part of the company's "most difficult" restructuring process. These layoffs began earlier in the fiscal quarter, as evidenced by the publisher laying off the QA team from its Baton Rouge, LA office in February.

On January 31, EA reported $1.3 billion in gross profit, even as it also lowered its full year profit expectations at the time. Overall gross profits eclipsed $5 billion (up by 18 percent from the previous year), and in that same posting, EA reported $7 billion in net revenue for the 2022-2023 fiscal year.

"Even amidst macro uncertainty, EA is operating from a position of strength," said Wilson. "Our business is gaining momentum as we continue to deliver high quality games and amazing content across some of the largest, most beloved franchises in the world."

Some of those laid off employees will be transitioned onto other projects, while those who can't be transitioned will be provided severance pay and career transition services.

The restructuring Wilson mentioned includes canceling projects that, in his words, "do not contribute to our strategy." Some of those killed projects include a mobile spinoff for Battlefield that was in development, ending the mobile version of Apex Legends, and killing a single-player spinoff game of the popular battle royale. 

EA rides 2022's wave of mass layoffs despite its claims of success

Since late 2022, the game and tech industries have had a wide range of job cuts. Last year, companies such as Amazon and Unity each laid off workers ranging from a few hundred to 10,000.

At the start of 2023, Microsoft cut 10,000 jobs, which affected its first-party game developers such as 343 Industries and Bethesda Game Studios. And they've continued to last through March, with Meta and Disney conducting layoffs of their own. 

In the layoff announcement, Wilson credited games such as FIFA 23 and Apex Legends with allowing EA to operate from a "position of strength." The company's next high-profile game, Star Wars Jedi: Survivor, will release on April 28.