Electronic Arts

History

2024: Reduction of 5% of the staff, curtailment of several projects

On February 28, 2024, one of the world's largest game publishers, Electronic Arts, announced a reorganization during which the number of personnel will be reduced by about 5%. In addition, the company will close several projects, the market prospects of which turned out to be vague.

The upcoming changes were announced by Electronic Arts CEO Andrew Wilson. According to him, the optimization of the structure is necessary in connection with the changed needs of customers and the difficult macroeconomic situation. The company stops further development of some games - which ones, as of the specified date, are not specified. Plus, it is planned to optimize real estate assets in order to "best support business operations."

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We also refuse to develop future licensed intellectual property, which we believe will not be successful in a changing environment, says Wilson.

By the end of March 2023, the total staff of Electronic Arts was approximately 13.4 thousand people. Thus, about 670 employees will fall under the reduction. The company emphasizes that it carefully considered all available options for changing the organizational structure, but it was not possible to completely do without layoffs. Where possible, Electronic Arts will offer employees alternative jobs on other teams. Those workers who will be forced to leave the company will receive monetary compensation and other payments due.

In mid-February 2024, as noted by Bloomberg, Electronic Arts confirmed that it was closing two mobile games. The company is expected to incur costs related to these changes ranging from $125 million to $165 million.^[1]

2023

Liquidation of the Russian legal entity

In Russia, the legal entity of the American developer and publisher of computer games Electronic Arts (EA) has been completely liquidated. This was reported on April 1, 2023 by the TASS agency with reference to the data of the unified state register of legal entities. The founders of Electronics Arts LLC are the Dutch Electronic Arts Nederland B. V. and the German Electronic Arts GmbH. According to the company's extract, information on the termination of the legal entity by its liquidation was entered into the register on March 31, 2023. The company, which has been legally represented in the Russian Federation since 2007, is now inactive, the publication reports.^[2]

Reduction of 6% of the state

On March 27, 2023, the board of directors of Electronic Arts approved a restructuring plan aimed at ensuring growth and strengthening the business in difficult economic conditions. The initiative provides for a decrease in the number of personnel by about 6%.

The American publisher of computer games sent a notice of downsizing to the US Securities and Exchange Commission (SEC). During the reorganization, approximately 800 employees in various divisions will be laid off. Electronic Arts will curtail a number of projects that did not meet expectations, as well as get rid of some office space. All these measures are aimed at optimizing the operating structure and reducing costs.

Electronic Arts will curtail a number of projects that did not meet expectations and get rid of some office space

Since we pay more attention to our product direction, we abandon projects that do not correspond to our strategy. In addition, the presence in the real estate sector will be reviewed, and some of our teams will undergo reorganization. Layoffs are the most difficult part of this initiative, and we approach the process with maximum care, "said Electronic Arts CEO Andrew Wilson.

SEC documents say that the implementation of the program will cost the company $170- $200 million. Expenses in the segment of intellectual property are estimated at $65- $70 million. From $55 million to $65 million will go to severance payments and other payments related to a decrease in the number of personnel. Another $45- $55 million will cost a reduction in office space. From $5 million to $10 million will amount to all other expenses, including losses due to termination of contracts. Activities related to the implementation of the initiative are expected to be predominantly completed by September 30, 2023. In the long term, these measures will help improve financial^[3]

2021

Purchase of mobile game developer Playdemic

At the end of June 2021, Electronic Arts announced the purchase of Playdemic mobile game studio from Warner Bros. Games. The deal is estimated at $1.4 billion, its closure is expected in mid-2022. Read more here.

Purchase of game developer Glu Mobile for $2.4 billion

In early February 2021, Electronic Arts announced the purchase of Glu Mobile for $2.4 billion. The companies expect the deal to close in the second quarter of 2021 and be EA's second major acquisition in recent months, following the purchase of UK game developer and publisher Codemasters. Read more here.

2020: Buying racing simulator maker Codemasters

On December 14, 2020, Electronic Arts (EA) announced the purchase of Codemasters for $1.2 billion. Thus, one of the largest mergers has been announced in the computer games market, which began to grow even faster during the pandemic. Read more here.

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