Apex Legends, Battlefield Maker Electronic Arts Lays Off Nearly 780 Employees: Here's Why

Despite the layoffs, EA's business is gaining momentum due to high-quality games and content.

EA is said to be moving away from projects that don't contribute to its strategy.

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Electronic Arts (EA), the Redwood City, California-headquartered company behind popular video games such as "Apex Legends," "Battlefield," "Crysis,"  and more, is reportedly letting go of 6 per cent of its workforce, equivalent to roughly 780 employees, due to global economic uncertainties. According to EA CEO Andrew Wilson, the company is focusing on its portfolio and moving away from projects that do not contribute to its strategy.

As a result, some teams will be restructured, and the company will review its real estate footprint. Impacted employees will be allowed to transition to other projects within the company, or receive severance pay and additional benefits, such as healthcare and career transition services. Wilson stated that communicating these decisions began earlier this quarter and will continue through early next fiscal year.

Despite the layoffs, EA's business is gaining momentum due to high-quality games and content. According to Wilson, EA SPORTS FIFA 23 is expected to be the biggest title in franchise history, Apex Legends is performing well following a successful fourth anniversary event, and The Sims is engaging its passionate community.

As per a filing with the US Securities and Exchange Commission (SEC), EA will incur charges of approximately $170 million to $200 million related to the layoffs and restructuring.

It is worth noting that EA had laid off around 200 Apex Legends testers over a Zoom call in February, according to a report from Kotaku.

In summary, Electronic Arts is letting go of 6 per cent of its workforce due to economic uncertainties and a renewed focus on its portfolio. The company will allow impacted employees to transition to other projects or receive severance pay and additional benefits. Despite the layoffs, EA's business thrives due to high-quality games and content.

Meanwhile, Lenovo is reportedly pulling the plug on its gaming smartphone business. Lenovo's Legion lineup of gaming smartphones with features like SSD RAID storage and pop-out cameras were well-received in the market, but now, the handset maker is making the move as 'part of a wider business transformation and gaming portfolio consolidation'.

The company is likely to shift its focus to the Motorola line of devices.