Edward Collins 
Mar 02, 2024
EA, the gaming giant behind franchises like FIFA and Battlefield, has announced significant restructuring measures, including the cancellation of an anticipated Star Wars game and a global workforce reduction of 5%, affecting approximately 670 employees.
The shelved project, described as a first-person shooter set in the expansive Star Wars universe, was in its early developmental stages. The decision to scrap it aligns with EA's strategic vision of optimising resources to deliver more immersive and interconnected gaming experiences for fans.
The move reflects broader industry trends, with job cuts becoming increasingly prevalent across the gaming sector. Rich Barham, a former executive at Blizzard, highlighted the challenges faced by game developers in securing funding amid industry-wide layoffs, warning of potential talent drain and long-term repercussions.
Read more: Daraz, Alibaba's e-commerce venture in South Asia, makes waves with layoff memo
EA's restructuring efforts began with layoffs at Codemasters, a UK-based developer renowned for its racing titles. CEO Andrew Wilson emphasised the need to streamline operations, sunset underperforming games, and prioritise projects with higher potential for success in an evolving market landscape.
Laura Miele, EA's entertainment chief, underscored the company's commitment to leveraging existing intellectual properties and online communities, citing Respawn Entertainment's acclaimed Star Wars Jedi franchise as a prime example. Despite the cancellation of the upcoming Star Wars title, Miele praised the team's dedication and talent.
The announcement comes amidst a series of industry-wide layoffs, with Microsoft and Sony also implementing workforce reductions within their gaming divisions. Sarah Stevens of e-volveHR emphasised the human toll of mass layoffs, urging compassion and support for affected individuals.
Karol Severin, a senior analyst at Midia Research, interpreted the layoffs as a sign of intensifying competition in the gaming industry's maturing landscape. Despite the challenges, Severin remained optimistic about the industry's growth prospects, citing its substantial economic footprint and projected expansion in the coming decade.
As gaming companies navigate these changes, the industry braces for a new era characterised by heightened efficiency, profitability, and competitiveness, setting the stage for continued evolution and innovation in gaming entertainment.
