Electronic Arts is the latest gaming company to announce that it is laying off a portion of its workforce.
According to the video game company, it is laying off five percent of its workforce as part of a “restructuring plan” while also reducing its real estate holdings, as shared by Reuters.
This comes soon after Microsoft laid off 1,900 Xbox and Activision Blizzard employees, and Sony laid off 900 PlayStation employees.
EA expects to incur charges ranging from approximately $125 million (roughly $169 million CAD) to $165 million (roughly $224 million CAD) due to the restructuring.
“While not every team will be impacted, this is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams,” CEO Andrew Wilson wrote in a letter to employees.
Severance pay and other “employee-related costs” will cost the company roughly $40 million to $55 million, while $50 million to $65 million will go towards “office space reductions.”
Read more about the restructuring here.
Image credit: Shutterstock
Source: Reuters
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