Game industry layoffs continue as EA moves to cut over 650 employees

The games industry has been continually hit with large numbers of employee layoffs since the beginning of the year, and it looks like EA will be the next studio in line to let go of some of its staff. The Battlefield 2042 publisher will cut 650 employees as part of a move to restructure and cut back on office space. Details of the layoffs were mentioned in a report that EA sent to the Securities and Exchange Commission, which also notes that it will be reducing its workforce by around 5%.

This comes just one day after Sony Interactive Entertainment announced it would be laying off about 900 employees across its first-party PlayStation studios. Insomniac Games, Guerilla Games, and Firesprite were among those impacted. Sony is also going to be closing down London Studio entirely. Prior to SIE’s announcement yesterday there had already been more than 6,400 layoffs across other studios. Including Activision Blizzard which Microsoft announced at the end of January.

That decision also led to Microsoft catching flack from the FTC. The regulator says Microsoft “misrepresented its plans for Activision.” None of these layoffs count the even larger number of employees who lost their jobs last year. As Engadget points out, more than 10,500 game industry employees were cut throughout 2023. These moves to cut back on the workforce also result in the cancellation of in-development projects. In EA’s case, things are no different.

EA employee layoffs lead to game cancellations, including a Star Wars first-person shooter

Game cancellations happen all the time. Sometimes for reasons that don’t include layoffs. But as many of the job cuts over the past year have shown, game cancellations tend to happen as a result of these moves. IGN reports that one of these games was a Star Wars first-person shooter that was being developed by Respawn Entertainment. The studio behind Apex Legends. EA still has other Star Wars games in the mix, though. It’s “committed” to a third game in the Star Wars: Jedi franchise, according to a note from EA Entertainment President Laura Miele.

EA is also still focused on its Black Panther game and a game revolving around Iron Man. Additionally, EA CEO Andrew Wilson says the job cuts will allow EA to focus more on its “biggest opportunities.” The note mentions that job cuts are already being communicated to impacted employees. And they’re expected to be finalized in the early parts of Q2. ” Communicating these impacts has already begun and will be largely completed by early next quarter,” Wilson says.