SEC filing from Electronic Arts
today announces the company is laying off 6%
of its workforce amid a restructuring plan.
does the math on this, estimating it means around 775 lost
jobs based on the 12,900 global employees reported by EA's latest annual
financials. Here's the announcement:
On March 27, 2023, the Board of
Directors of Electronic Arts Inc. (the "Company") approved a restructuring plan
(the "Plan") focused on prioritizing investments to the Company's growth
opportunities and optimizing its real estate portfolio. The Plan includes
actions driven by portfolio rationalization, including intellectual property
impairment charges and headcount reductions impacting approximately 6% of the
Company's workforce, in addition to office space reductions.
The Company estimates that it will incur approximately $170 million to $200
million in charges in connection with the Plan. These charges consist primarily
of approximately $65 million to $70 million in charges related to intellectual
property impairment, approximately $55 million to $65 million related to
employee severance and employee-related costs, approximately $45 million to $55
million associated with office space reductions, and approximately $5 million to
$10 million of other charges, including contract cancellations. Of the aggregate
amount of charges that the Company estimates it will incur, the Company expects
that approximately $80 million to $100 million will be future cash expenditures.
The actions associated with the Plan are expected to be substantially complete
by September 30, 2023. Certain payments associated with lease obligations will
be paid in accordance with their terms.