Videogame maker Electronic Arts Inc. said Wednesday it will cut about 5% of its workforce and plans to cancel some games in development.<\/p>\n
In a letter<\/a> to employees, Chief Executive Andrew Wilson said \u201cwe are streamlining our company operations to deliver deeper, more connected experiences for fans.\u201d<\/p>\n He said the layoffs will affect about 5% of the company\u2019s global workforce, which would be around 670 people, based on a staff of 13,400 as of last March, according to an SEC filing<\/a>.<\/p>\n \u201cWe are also sunsetting games and moving away from development of future licensed IP that we do not believe will be successful in our changing industry,\u201d Wilson said, allowing EA It was unclear what games will be canceled. EA has a number of videogames from major franchises such as Marvel and \u201cStar Wars\u201d in development. EA also develops the \u201cMadden NFL\u201d football game, \u201cEA Sports FC\u201d soccer game and the \u201cApex Legends\u201d franchise.<\/p>\n Also see:<\/strong> EA\u2019s upcoming college-football game \u2018taking advantage\u2019 of players with $600 payment, expert says<\/a><\/p>\n The videogame industry \u2014 as well as the wider tech industry \u2014 has been wracked by layoffs over the last year-plus, with more than 10,000 jobs cut in 2023 and about 8,000 so far this year. <\/p>\n Last March, EA laid off about 6% of its workforce.<\/p>\n EA\u2019s latest cuts come a day after Sony Last month, EA said that while gaming demand improved over the holiday quarter, it expected fiscal fourth-quarter net bookings, a gauge of physical and digital sales, to decline year over year<\/a>.<\/p>\n EA shares were little changed Wednesday. The stock is up about 2% year to date and has gained about 27% over the past 12 months, compared to the S&P 500\u2019s
\n EA,
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\n to \u201cdouble down on our biggest opportunities \u2014 including our owned IP, sports and massive online communities.\u201d<\/p>\n
\n SONY,
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\n slashed about 900 jobs<\/a> in its PlayStation unit. Last month, Microsoft
\n MSFT,
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\n said it would cut about 1,900 workers<\/a> following its acquisition of Activision Blizzard. Amazon\u2019s
\n AMZN,
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\n Twitch<\/a>, Unity Software<\/a>
\n U,
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\n and Riot Games<\/a> have also announced layoffs this year.<\/p>\n
\n SPX<\/a>
\n 6% rise in 2024 and 28% gain over the past year.<\/p>\n<\/p><\/div>\n<\/div>\n