- EA has reportedly laid off an unknown number of employees from multiple teams.
- The studio is making structural changes to prepare for its $55 Billion Saudi takeover.
- This is the third round of layoffs the company has made just this year alone.
EA made headlines as it announced it was going private in a massive deal with a Saudi Arabian investment fund. Many US congressmen opposed the deal, but it’s still expected to go through; before that, the company has reduced its headcount.
The measures have already begun ahead of the $55 billion Saudi deal, as Electronic Arts (EA) has reportedly laid off an undisclosed number of employees. The layoffs won’t affect developers, but will instead cut administrative jobs.
Why it matters: Just like what’s happening at other companies like Xbox and Ubisoft, EA too is going through restructuring before its acquisition, and the studio is informing staff that it will have to adapt accordingly.
According to Kotaku, the staff was informed via email that they are making structural changes, which will lead to job cuts, new positions, and moving teams across the studio, essentially preparing for the takeover.
Additionally, this is at least the third time the studio has made layoffs this year. They recently reduced the headcount from teams working on the “highly successful” Battlefield 6 and more from the Skate team.
The Saudi fund will own almost the entirety of the company, and 99% of the company’s shareholders have already given their approval. However, people are skeptical, since that could take creative decision-making out of EA’s hands.
The gaming industry, as much as it’s progressing, seems to be in shambles, too, with constant layoffs and studio closures. Xbox is expected to shut down studios and cut 1000 jobs, Ubisoft has done it, and EA now joins the list.
What are your thoughts on EA laying off an undisclosed number of its employees ahead of the Saudi deal? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.
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