Electronic Arts has announced its plan to reduce its workforce by about 5%, or roughly 670 employees, amid ongoing layoffs in the technology and gaming industry. 

Electronic Arts to Lay Off 5% of its Workforce

According to the Associated Press, the video game company disclosed in a regulatory filing that its board has approved a restructuring initiative that includes staff reductions and the closure of certain offices or facilities.

As of March 31, 2023, Electronic Arts employed 13,400 individuals globally, according to the filing. The company expects layoffs to be largely completed by early next quarter.

Electronic Arts estimates incurring total charges ranging from $125 million to $165 million in relation to the restructuring. These charges include approximately $50 million to $65 million associated with office space reductions and about $40 million to $55 million related to severance and employee-related expenses.

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Wave of Tech Layoffs

This announcement closely follows Sony's recent decision to slash about 900 jobs in its PlayStation division, constituting about 8% of its worldwide workforce.

The technology sector has recently witnessed a wave of layoffs. Last month, Microsoft disclosed its plan to terminate nearly 2,000 employees after acquiring Activision Blizzard. Riot Games also announced in January that it would cut its staff by 11%. 

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