Electronic Arts will cut six percent of its workforce and reduce office space to focus more on its best growth prospects.
The gaming giant, which produces the hugely popular FIFA football games, didn’t specify how many people or which departments are the layoffs.
However, the video game maker does plan to transfer some staff internally to other areas.
EA said the dismissals started earlier this quarter and would continue through the early part of its next fiscal year.
Last year, the company had around 13,000 staff, six percent of which is around 780, but the number could well be less due to the department transfers.
The Redwood City-based company also considers shrinking its real-estate spending and reorganizing some teams.
CEO Andrew Wilson said: “Now, more than ever, we must be focused on our strategic priorities.
“These priorities align our investments with opportunities to make the biggest impact.”
EA is the first major videogame publisher to announce massive layoffs.
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Technology leaders have blamed the layoffs on a slowdown in demand and advertising to the need to downsize teams after recent overhiring.
The videogame industry has had a difficult start to the new year, as player spending has slowed, reversing some of the outsized growth seen during the pandemic.
Several prominent publishers, such as Ubisoft and Take-Two Interactive, have lately undertaken strategic changes.
Source: The Wall Street Journal