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Electronic Arts has announced a new round of layoffs cutting 5% of the company’s workforce or roughly 670 roles. As a part of this reorg, EA is cancelling upcoming projects and sunsetting support for others.
Star Wars FPS cancelled among others
The highest profile casualty is Respawn’s untitled Star Wars first person shooter. The company first announced the project in 2022 with Peter Hirschmann, game director at Respawn, leading the team.
Shortly after CEO Andrew Wilson announced the layoffs, Laura Miele, president at EA Entertainment sent a memo to staff confirming the project would be shuttered. Overall, EA is shifting its focus from licensed IP to supporting its own brands and existing portfolio.
“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,” said Miele’s note. “Giving fans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus.”
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EA is reassigning the bulk of the Star Wars FPS developers to other projects. These include Apex Legends, Iron Man, Black Panther and The Star Wars: Jedi series’ third installment.
EA’s cuts are impacting several other studios and projects in the company’s portfolio. Yesterday, Marcus Lehto, Halo co-creator and game director for EA’s Battlefield, left the company. His studio, Ridgeline Games, will be shuttered with EA folding some of its developers into Ripple Effect.
The publisher is also winding down support for a number of its licensed mobile titles. Last week, EA announced it would stop supporting F1 Mobile Racing and MLB Tap Sports. Other cuts included Kim Kardashian Hollywood and The Lord of the Rings: Heroes of Middle-earth less than a year after it launched.
Trimming costs
Trimming these projects is in-line with Wilson’s goal of shifting EA’s focus away from new licensed IP projects. While his memo said the move prioritized creativity and innovation, the cost of IP licensing is likely another factor.
Last year, EA took a gamble and chose to not renew its licensing agreement with FIFA for a reported $1 billion. Instead, the publisher rebranded the franchise to EA Sports FC. Last year’s entry saw double-digit growth for new players, with 14.5 million accounts registered in the first month. This likely served as a test case, showing some licensed titles could succeed without the brand name attached.
Of course, layoffs continue to rock the games industry. Per videogamelayoffs.com, nearly 8,000 gaming jobs have been cut in the first two months of 2024. This rivals the estimated 10,500 jobs lost in 2023.
This is EA second major round of layoffs in the last year. In March 2023, the publisher cut 6% of its staff for similar macro-economic reasons. A smaller round of layoffs at EA’s BioWare saw an additional 50 jobs cut in August 2023.
The company’s net bookings for the quarter ending December 31, 2023 were $2.366 billion, roughly flat from a year ago.
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