(CNN) — Electronic Arts plans to lay off 5% of its workforce, becoming the latest company to cut jobs in the games and technology sector.
EA, the maker of highly profitable gaming franchises such as Madden NFL games and Apex Legends, said the job cuts are intended to support “strategic priorities and growth initiatives,” according to a securities filing Tuesday. The company said it was part of a broader restructuring. EA added that it plans to reduce its office space footprint.
The company also indicated that it plans to reschedule future content.
EA CEO Andrew Wilson said Wednesday in a memo to employees included in the company’s documents: “We are also discontinuing the game, and we do not believe we will succeed in a changing industry. “We’re moving away from future license (intellectual property) development.” Securities notification. “We are streamlining our company’s operations to deliver deeper, more connected experiences for our fans around the world that build community, shape culture, and grow fandom.”
The video game industry has been cutting jobs over the past year. EA itself laid off about 800 employees last year.
Epic Games cut 830 jobs in September. In January, Tencent-owned Riot Games announced it would lay off 11% of its workforce, and Microsoft announced it would cut 1,900 jobs from its Activision Blizzard and Xbox gaming divisions. And consumer electronics giant Sony announced on Tuesday that it would cut 8% of its global workforce, or about 900 people.
In its most recent annual report filed in May last year, EA said it had 13,400 employees as of March 31, 2023. That means Wednesday’s layoffs could come on the heels of last year’s layoffs. Affecting more than 600 workers.
EA stock closed up nearly 0.5% on Wednesday. The company’s stock price has increased nearly 27% since this time last year.
