Electronic Arts, the publisher behind franchises like Battlefield and Madden, is set to implement substantial cost-cutting measures following its recent acquisition by a consortium of investors, including Saudi Arabia and Jared Kushner's group. The company has informed debt holders that it aims to reduce annual costs by up to $700 million, a move that has sparked concerns of widespread layoffs within the industry.
According to reporting from Bloomberg, EA plans to achieve these savings through various means, including $170 million earmarked for "organizational efficiencies." This phrase is widely understood to signify workforce reductions, a development many EA employees have anticipated since the deal's announcement last year. The publisher's extensive portfolio includes sports titles like EA Sports FC and College Football, alongside franchises such as The Sims and Battlefield, and studios like BioWare, which is currently developing the next Mass Effect.
In line with broader industry trends, EA has been concentrating resources on high-potential, lower-risk projects. Criterion Games, formerly known for the Burnout and Need for Speed series, has reportedly been repurposed as a dedicated support studio for the Battlefield franchise. "We are solely focused on Battlefield," stated Rebecka Coutaz, VP & GM of Battlefield Studios Europe, during the studio's 30th anniversary.
Beyond studio realignments, EA is also exploring ways to streamline its support functions. The company has been investigating the use of overseas vendors for roles like customer service and is increasingly looking toward artificial intelligence. While EA executives have expressed optimism about generative AI's potential to reshape business operations, they have maintained that such technology will not appear in finished consumer products.
While developers at EA may face significant job losses, CEO Andrew Wilson is reportedly in line for a substantial financial payout. SEC filings from before the company went private indicated a $77 million compensation for the last fiscal year, a figure double that previously reported.