Electronic Arts has announced a new round of layoffs cutting 5% of the company’s workforce or roughly 670 roles. In addition to this reorg, EA is cancelling upcoming projects and sunsetting support for others.
Star Wars FPS cancelled among others
The highest profile casualty is among EA’s cancelled projects is Respawn’s untitled Star Wars first person shooter. The company first announced the project in 2022 with Peter Hirschmann, game director at Respawn, leading the team. EA is reassigning the bulk of these developers to other projects. These include Apex Legends, Iron Man, Black Panther and The Star Wars: Jedi series’ third installment.
Shortly after CEO Andrew Wilson announced the layoffs, Laura Miele, president at EA Entertainment sent a memo to staff confirming the Star Wars FPS would be shuttered. Overall, this axed project aligns with EA shifting its focus from licensed IP to supporting its own brands and existing portfolio.
“It’s always hard to walk away from a project, and this decision is not a reflection of the team’s talent, tenacity, or passion they have for the game,” said Miele’s note. “Giving fans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus.”
In addition to the Star Wars FPS team, EA is also dealing with other reassignments from other studios and projects in the company’s portfolio. Yesterday, Marcus Lehto, Halo co-creator and game director for EA’s Battlefield, left the company. EA is shuttering Lehto’s Ridgeline Games and folding its retained developers into Ripple Effect.
The publisher is also winding down support for a number of its licensed mobile titles. Last week, EA announced it would stop supporting F1 Mobile Racing and MLB Tap Sports. Other cuts included Kim Kardashian Hollywood and The Lord of the Rings: Heroes of Middle-earth less than a year after it launched.
Trimming costs
Outside of Battlefield’s change in leadership, trimming these lP-based projects is in-line with Wilson’s goal of shifting EA’s focus away from new licensed IP projects. While his memo said the move prioritized creativity and innovation, the cost of IP licensing is likely another factor.
Last year, EA took a gamble and chose to not renew its licensing agreement with FIFA for a reported $1 billion. Instead, the publisher rebranded the franchise to EA Sports FC. Last year’s entry saw double-digit growth for new players, with 14.5 million accounts registered in the first month. This likely served as a test case, showing some licensed titles could succeed without the brand name attached.
Along those lines, EA is also cutting costs through layoffs across the publisher’s portfolio. These cuts are contributing to a wave that’s continuing to rock the wider games industry. Per videogamelayoffs.com, nearly 8,000 gaming jobs have been cut in the first two months of 2024. This rivals the estimated 10,500 jobs lost throughout 2023.
This is EA second major round of layoffs in the last year. In March 2023, the publisher cut 6% of its staff for similar macro-economic reasons. A smaller round of layoffs at EA’s BioWare saw an additional 50 jobs cut in August 2023.
The company’s net bookings for the quarter ending December 31, 2023 were $2.366 billion, roughly flat from a year ago.
Edited at 10:30pm PT: This article was updated to further clarify that the layoffs and EA’s cancelled projects such as Respawn’s Star Wars FPS are connected, but not causal.