As usual, the layoffs come amidst what sounds like a pretty solid situation for the company.
"Even amidst macro uncertainty, EA is operating from a position of strength," Electronic Arts CEO Andrew Wilson said. "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."
Citing the continued success and growth of games including FIFA 23, Apex Legends, and The Sims, Wilson said Electronic Arts "are leaders in a dynamic industry with new audiences, new technology, and new media trends fundamentally reshaping the world around us."
But success comes with a price, and in this case that price is the jobs of several hundred people who work at EA.
"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 said. "These decisions are expected to impact approximately six percent of our company’s workforce. This is the most difficult part, and we are working through the process with the utmost care and respect."
Electronic Arts didn't say how many people were being put out of work, but the company employed approximately 12,900 people as of March 31, 2022, according to an SEC filing. Assuming that figure hasn't changed dramatically over the intervening year, that puts the number of lost jobs at around 774. It has changed at least slightly, though: According to a Kotaku report, EA laid off more than 200 quality assurance testers in February.
Wilson said that some employees affected by the cuts will have an opportunity to move to other projects, and where that's not possible, severance pay and benefits including health care and "career transition services" are being offered instead. The company began notifying employees of the cuts earlier in this financial quarter, which began on January 1, and expects notices to continue early into its next fiscal year, which starts on April 1.
Other companies that have laid off large numbers of employees after making literally billions of dollars in recent months include Take-Two Interactive, Meta (twice), Google, Microsoft, and Amazon, which resulted in more than 400 people being let go from Twitch.