EA Restructures, Cuts 650 Jobs and Several Games Amid Industry Shifts
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Electronic Arts is cutting more than 650 jobs, or about 5 percent of its workforce, and halting several games as it makes changes to its strategy based on shifts in player preferences.
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The company will cancel development of an upcoming Star Wars first-person shooter game to focus resources on IP EA fully owns, as well as sports games and online communities.
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The restructuring will lead to $125 to $165 million in charges for EA, including $50 to $65 million in office consolidation and $40 to $55 million in severance costs for affected employees.
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The company said its decision results from recent major shifts in the video game industry and need to spend resources on entertainment that aligns with what players want today and in the future.
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The restructuring comes as EA CEO Andrew Wilson writes that the company will "further empower our creative leaders to deliver our strategic priorities" amid an "accelerating industry transformation."