As we speak, EA introduced a serious firm shake-up that may lead to roughly 670 people, or 5% of its workforce, dropping their jobs. As part of that very same reorganization, Respawn’s Star Wars FPS in-development at Respawn is being canceled.
Following CEO Andrew Wilson’s announcement of the cuts at present, EA Leisure president Laura Miele shared a be aware with workers explaining in additional element what EA’s enterprise priorities could be going ahead. This contains her announcement that EA is shutting down an early growth Star Wars FPS motion sport as part of an ongoing focus on its personal owned manufacturers and supporting its present video games.
“It is at all times arduous to stroll away from a undertaking, and this determination just isn’t a mirrored image of the workforce’s expertise, tenacity, or ardour they’ve for the sport,” Miele wrote. “Giving followers the following installments of the enduring franchises they need is the definition of blockbuster storytelling and the proper place to focus.”
Not a lot is thought in regards to the Star Wars FPS, however it was rumored to characteristic a Mandalorian protagonist indirectly. The destiny of EA’s Star Wars technique sport can be unclear. EA is endeavor the transfer partially on account of what it perceives to be a fast shift towards giant open-world video games, large communities, and reside service video games.
IGN understands that the workforce beforehand working on this sport will largely be reassigned to different tasks together with Apex Legends, Iron Man, Black Panther, and Jedi — for which EA has confirmed a 3rd installment. The Star Wars: Jedi franchise will proceed, regardless of EA’s transfer to focusing on owned IP, and EA is claimed to stay centered on its long-standing relationship with Disney/Marvel.
The Cuts Continue
Moreover, EA can be restructuring its Battlefield groups considerably following the departure of Marcus Lehto introduced yesterday. It is sunsetting Ridgeline Video games, folding a few of its builders into Ripple Impact. Danny Isaac and Darren White at Criterion will oversee single-player work on the sequence going ahead.
And EA additionally will sundown plenty of cell video games, together with the already-announced F1 Mobile Racing and MLB Tap Sports, in addition to Kim Kardashian Hollywood and The Lord of the Rings: Heroes of Center-earth – which was launched lower than a 12 months in the past.
IGN understands that EA intends to reorient its enterprise and growth plans to focus on a handful of its greatest franchises, together with EA Sports activities, Apex Legends, Star Wars: Jedi, Iron Man, Black Panther, Battlefield, Want for Pace, Dragon Age, Skate, and The Sims. IGN additionally has discovered {that a} workforce continues to be working in pre-production on the following Mass Impact, although Bioware’s present focus stays on Dragon Age.
“It is not misplaced on me that these adjustments are greater than phrases on a web page; they immediately affect the work you do day by day and, in some instances, imply we’re eliminating roles and saying goodbye to proficient colleagues,” wrote Miele. “I’ll by no means lose sight of the human affect of those selections, and know that change and disruption aren’t simple. In troublesome moments, we should keep in mind how essential it’s to point out up for our gamers and for one another.”
The video games trade continues to be rocked by layoffs
For the monetary quarter ending in December of 2023, EA reported web bookings of $2.37 billion (up 7% 12 months over 12 months) and web income of $1.945 billion, largely pushed by EA Sports activities FC and Madden. The corporate’s layoff of roughly 670 people is one more occasion of ongoing mass layoffs rocking the whole trade, impacting roughly 10,000 developers in 2023, and approaching 8,000 in simply the primary two months of 2024. EA itself already laid off 6% of its workforce almost a year ago, with Wilson on the time citing very related motivations to this 12 months’s. Regardless of these layoffs, the entire headcount previous to at present’s cuts is increased (13,400) than it was over the past mass layoff (12,900).
The corporate’s SEC submitting states that the corporate will take on roughly $125 million to $165 million in prices in reference to these layoffs, together with prices associated to workplace area reductions, severance, and prices associated to licensor commitments, probably associated to the canceled Star Wars sport.
Rebekah Valentine is a senior reporter for IGN. Bought a narrative tip? Ship it to rvalentine@ign.com.