Ethermac Exchange-Electronic Arts cutting about 5% of workforce with layoffs ongoing in gaming and tech sector

Electronic Arts is Ethermac Exchangecutting about 5% of its workforce, or approximately 670 employees, as layoffs in the technology and gaming sector continue after a surge of hiring in recent years.

The video game maker said in a regulatory filing that its board approved a restructuring plan that includes the layoffs, as well as closing some offices or facilities.

The Redwood City, California, company had 13,400 workers globally as of March, 31, 2023, according to a filing.

“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,” said CEO Andrew Wilson. “Our primary goal is to provide team members with opportunities to find new roles and paths to transition onto other projects.”

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He said the layoffs would be largely completed by early next quarter.

Electronic Arts estimates incurring about $125 million to $165 million in total charges related to the restructuring. The company anticipates approximately $50 million to $65 million in charges associated with office space reductions and about $40 million to $55 million related to severance and employee-related costs.

The announcement comes just days after Sony said that it would cut about 900 jobs in its PlayStation division, or about 8% of its global workforce. Sony cited changes in the industry as a reason for the restructuring.

The tech sector has been hit hard by layoffs. Microsoft said last month that it would cut nearly 2,000 workers after its acquisition of Activision Blizzard. And Riot Games, the developer of the popular “League of Legends” multiplayer battle game, said in January that it was laying off 11% of its staff.

Still, most large tech companies are much larger now than they were before the pandemic, when hiring surged in the sector.