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Electronic Arts (EA) has announced its plans to cut 6% of its current workforce of 12,900 employees. The company aims to save around $170 to $200 million per year with this measure, along with the company's restructuring. The employees that will be laid off are those who are working on underperforming projects that have failed to meet expectations. This move comes amid the slowdown in players' spending growth in recent times, with a sharp decline following the pandemic.
Impact on Twitch Streamers
The news of EA Sports' workforce reduction may also affect Twitch streamers. EA Sports games like FIFA and The Sims are very popular among Twitch users. The company's decision to cut employees may lead to a reduction in game development, which could lead to a decrease in the number of games available to stream on Twitch.
EA Sports' Franchise
While games like FIFA and The Sims will remain unaffected by the layoffs, the Star Wars franchise has been put on hold. It is unclear when the franchise will resume.
This move is not a first for EA Sports. The company has laid off staff members in the past, including 350 employees in 2019. EA Sports' decision is a strategic move to realign its resources and focus on profitable areas, which in turn will benefit the company in the long run.
EA Sports' decision to cut staff members may have a significant impact on the gaming industry. The company's decision to focus on profitable areas may lead to a decrease in game development, which may affect the gaming industry as a whole.
Conclusion
The decision by EA Sports to cut its workforce by 6% is a strategic move aimed at saving costs and realigning its resources. While it may have a significant impact on the gaming industry, the move is aimed at benefiting the company in the long run.
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