Electronic Arts is cutting 6% of its workforce as part of a restructuring plan

Electronic Arts has announced plans to cut 6% of its workforce as part of a restructuring plan.

In a filing with the US Securities and Exchange Commission on Wednesday, the company said it expects to incur up to $200 million in charges in connection with the move.

These consist of “approximately $65 million to $70 million in charges related to intellectual property impairment, approximately $55 million to $65 million related to employee severance and employee-related costs, approximately $45 million to $55 million associated with office space reductions, and approximately $5 million to $10 million of other charges, including contract cancellations.”

As noted by GamesIndustry.biz, the layoffs could impact around 775 employees based on EA‘s last annual report, which said it employed 12,900 people globally as of March 2022.

EA CEO Andrew Wilson reportedly told staff the company “is operating from a position of strength” that will see it leverage its biggest brands to build games with large communities, engage these players with social and creator tools, and deliver “blockbuster interactive storytelling.”

He said: “As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams.”

Wilson added: “This is the most difficult part, and we are working through the process with the utmost care and respect. Where we can, we are providing opportunities for our colleagues to transition onto other projects. Where that’s not possible, we are providing severance pay and additional benefits such as health care and career transition services.”

EA begun informing staff of the layoffs earlier this year and said the restructuring should be completed by the end of September.

In February, the company reportedly laid off over 200 quality assurance testers dedicated to Apex Legends.

Further reading

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EA is cancelling Apex Legends Mobile and Battlefield Mobile

The company will also close its Industrial Toys mobile development studio

The layoffs followed January’s news that EA planned to close Apex Legends Mobile and had cancelled Battlefield Mobile before its official release, while also shutting its developer Industrial Toys.

The company also reportedly cancelled an unannounced Titanfall game that was being planned as a single-player experience for Apex Legends, which a team of about 50 people had been working on.