A grim year for the video game industry just got grimmer, as EA has plans to cut 670 workers - approximately 5% of its workforce - in a major business shakeup that will include sunsetting existing games and canceling licensed IP.
In a note sent to staff and obtained by IGN, EA CEO Andrew Wilson said the restructuring is in response to "accelerating industry transformation where player needs and motivations and changed significantly."
As part of its restructuring, EA is "moving away from the development of future licensed IP." The company has yet to reveal the full scope of teams and projects impacted, but Wilson did reveal that Respawn's Star Wars first-person shooter has been canceled. We didn't know a whole lot about the game, but it was reportedly a Mandalorian adaptation.
"It's always hard to walk away from a project, and this decision is not a reflection of the team's talent, tenacity, or passion they have for the game," EA Entertainment president Laura Miele wrote in a separate note to staff, also via IGN. "Giving fans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus."
Moreover, Ridgeline Games, the Seattle-based studio formed in 2021 to develop a single-player Battlefield single-player, has been shuttered as part of EA's restructuring. A number of its developers will be folded into Ripple Effect, a Battlefield co-developer originally known as DICE LA. Battlefield's single-player future is apparently still part of EA's plans, now being headed up by Criterion's Danny Isaac and Darren White.
Wilson said EA will now focus on its own first-party IP, sports, and "massive online communities," moving developers from other projects to support these initiatives.
"This greater focus allows us to drive creativity, accelerate innovation, and double down on our biggest opportunities — including our owned IP, sports, and massive online communities — to deliver the entertainment players want today and tomorrow. Lastly, we are streamlining our company operations to deliver deeper, more connected experiences for fans everywhere that build community, shape culture, and grow fandom," Wilson said.
"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," said Wilson. "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."
The sad news at EA follows closely on the heels of recent layoffs at PlayStation, which included cuts at Naughty Dog, Insomniac, and the entirety of the now-defunct studio PlayStation London. 2024 has also seen layoffs at Unity, Xbox, Twitch, and Discord, with reports painting a dire image of the future.
We wish everyone impacted all the best in getting back on their feet.
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