What’s going on:
On Wednesday, video game giant Electronic Arts announced they were reducing their workforce by 6% (a total of 800 jobs), as well as scaling back their office space.
The company anticipates taking impairment charges in the range of $170 to $200 million, as revealed in an SEC filing.
Why it matters:
EA boasted just under 13,0000 employees as of the quarterly filing in March 2022; however, in January of the same year, the firm’s quarterly revenue missed analysts’ estimates and its bookings outlook fell short of expectations.
In a memo posted Wednesday, EA CEO Andrew Wilson said his company is “moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams.”
How it’ll impact the future:
EA has become part of the unfortunate growing number of tech companies that have faced cutbacks due to economic challenges and market swings in the past two years. A staggering 155,000 tech workers across 500 firms have been laid off since 2022, with the most severe impacts felt this year.
