Digital Arts lays off 6% of workforce in cost-cutting push
© Reuters. FILE PHOTO: EA (Eletronic Arts) Sports logo is seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) -Videogame publisher Electronic Arts (NASDAQ:) said on Wednesday it will lay off about 6% of its workforce and reduce office space, joining a host of U.S. companies that have trimmed costs to cope with a rough economy.
EA, which had about 12,900 staff as of March-end last year, expects to incur between $170 million and $200 million in charges related to its restructuring plan.
Corporate America, especially companies from the technology and finance sector, are reining in expenses as they brace for a looming recession amid rising interest rates around the world.
The company behind the “FIFA” soccer videogame franchise and “The Sims” also said it will move away from projects that do not contribute to its strategy.
CEO Andrew Wilson in a note to employees said EA will provide opportunities for employees to move to other projects and where that is not possible, it will provide staff laid off with severance pay and additional benefits.