Electronic Arts (Nasdaq: EA) announced that it will cut approximately 6% of its global workforce as part of a restructuring plan. In a U.S. Securities & Exchange (SEC) filing, the company said that its board of directors approved the restructuring plan on March 27, which will include job cuts and the elimination of some office space-related real estate.
The total cost associated with this restructuring plan will be somewhere between $170M – $200M USD in charges. Those charges include $65M – $70M in charges related to intellectual property impairment, $55M – $65M for employee severance and related costs, $45M – $55M for office space reductions, and $5M – $10M in miscellaneous charges related to contract cancellations. EA added that it expects that approximately $80M – $100M will be related to “future cash expenditures.” The company expects this plan to be substantially complete by Sept. 30, 2023.
EA operates a number of esports competitive series related to its games, though the scale and scope is relatively small for most of its biggest IPs. The company publishes Apex Legends and operates the Apex Legends Global Series (ALGS), the EA SPORTS FIFA 21 Global Series (which will change to its new football titles), and the Madden NFL Championship Series.