Electronic Arts Reportedly Preparing Mass Layoffs After Acquisition
Electronic Arts has only just completed its $55 billion acquisition, but reports suggest the company is already preparing a new round of layoffs that could affect a large number of employees.
The planned cuts are said to be part of a broader effort to reduce costs following the completion of the deal.
The information comes from Bloomberg journalist Jason Schreier, who shared it on Bluesky.
EA’s Cost-Cutting Plan Could Lead to Mass Layoffs
He said, “EA’s annual Ebitda is around $1.5 billion, which should be enough to service the interest payments. But the publisher has told debt investors that it will cut $700 million in annual costs including $170 million in “organizational efficiencies,” per Bloomberg. In other words: mass layoffs.”
According to Schreier, these cost-cutting plans were outlined after Electronic Arts confirmed its acquisition by Silver Lake, the Public Investment Fund of Saudi Arabia, and Affinity Partners, the investment firm founded by Jared Kushner, the son-in-law of U.S. President Donald Trump.
We should therefore expect another announcement involving layoffs in the video game industry. It is also possible that entire development teams could be affected as the company looks to reduce costs.
There is also concern for studios such as BioWare, which is already in a difficult position and could face the consequences of this acquisition.
At the time of writing, nothing has been officially confirmed by EA, so we’ll have to wait for an official announcement. As more information becomes available, we’ll make sure to keep you updated here at MP1st.
In related news, EA CEO Andrew Wilson and other executives received more than $60 million in bonuses after Battlefield 6 met all of the publisher’s launch milestones, despite the company laying off developers earlier this year.
They can easily cut down the EA Sports studios to 10-15 people. It doesn’t take too many developers to literally copy and paste a game and just replace the years number on everything…
Until they update NCAA and Madden on a complete overhaul, I will never buy them again.