EA lays off 5% of staff as it cuts licensing deals and closes offices

Restructuring plan will cost publisher up to $165 million

EA lays off 5% of staff as it cuts licensing deals and closes offices

EA is to lay off 5% of its staff and close offices as part of a restructuring plan that will cost it between $125 million to $165 million.

The publisher said it was refocusing on “strategic priorities and growth initiatives”. As part of that, it would be shutting down games and moving away from the development of future licensed IP that “we do not believe will be successful in our changing industry”.

The company had already announced its intentions to shut down mobile titles MLB Tap Sports and F1 Mobile Racing.

EA expects up to $55m in expenses associated with employee severance and employee-related costs, while office closures will cost up to $65m. It also expects to incur expenses of up to $45m in relation to licensor commitments.

It said it hopes to complete its restructuring plan by December 31st, 2024.

Owned IP focus

In a letter to employees, EA CEO Andrew Wilson said the publisher would look to double down on what he saw as its biggest opportunities: “owned IP, sports and massive online communities”.

In this time of change, we expect these decisions to impact approximately 5% of our workforce,” said Wilson.

“I understand this will create uncertainty and be challenging for many who have worked with such dedication and passion and have made important contributions to our company.

“While not every team will be impacted, this is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams.

“Our primary goal is to provide team members with opportunities to find new roles and paths to transition onto other projects. Where that’s not possible, we will support and work with each colleague with the utmost attention, care, and respect.

“Communicating these impacts has already begun and will be largely completed by early next quarter.”

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Craig Chapple is a freelance analyst, consultant and writer with specialist knowledge of the games industry. He has previously served as Senior Editor at, as well as holding roles at Sensor Tower, Nintendo and Develop.