EA Cuts 400 Jobs, Closes BioWare Studio Amid Corporate Restructuring
- EA announces 400 job cuts and the closure of BioWare studio.
- Current and former employees describe a culture of secrecy regarding layoffs.
- EA prioritizes profits amid a significant debt of $20 billion post-acquisition.
Last week, Electronic Arts (EA) confirmed it is laying off 400 employees across multiple studios as part of a strategy to cancel projects and focus on its most profitable initiatives. This move includes the closure of the renowned BioWare studio, resulting in the termination of most of its remaining staff, which numbered around 50.
Internally, morale is reportedly low. A report from Vertical Slice highlights a pervasive culture of secrecy regarding layoffs and a troubling lack of clarity about affected individuals and their teams’ futures. One former employee mentioned that her colleagues only learned of her layoff via LinkedIn, contravening EA’s stated policy of protecting impacted individuals’ privacy.
“My suspicion is that it is done to isolate the people laid off,” one staff member remarked, emphasizing the prolonged adjustment period needed for remaining employees to regain their footing amidst such upheaval.
The layoffs also complicate the ongoing work, as existing projects now fall to a diminished workforce. Sources indicate that it can take weeks for EA to provide clarity about project responsibilities to remaining employees.
EA’s method of informing employees about their layoffs is emblematic of modern corporate practices. Affected staff are reportedly invited to a Zoom meeting where chat features are disabled and their identities concealed, leading to abrupt notifications regarding their terminations without opportunities for questions or farewells.
“You’re getting laid off because you’re just numbers on a list,” one source commented, indicating a disconnect between employees and their projects.
Furthermore, insiders have suggested that EA’s current focus prioritizes profits over employee welfare, amplified by the company’s $55 billion acquisition by a consortium spearheaded by Saudi Arabia’s Public Investment Fund, leaving EA with $20 billion in debt that it must manage.
Another employee noted, “Morale has been terrible,” citing the company mantra of “do less, better” as insufficient, especially given that workloads seem unchanged despite diminished staffing. Enthusiasm for generative AI solutions among upper management has added tension within teams, according to staff feedback.
This trajectory is concerning for the largest game publisher in the Western market, and many believe the organization has been declining for some time. “That the recent email about the organisation changes [sounded like] it was written by a robot best sums up EA,” one individual concluded, describing an environment where leadership appears detached from employee concerns.
In contrast, the broader gaming industry is also witnessing significant layoffs, with Microsoft’s Xbox division planning to eliminate 3,200 jobs. Industry analyst Raj Patel recently indicated on Bluesky that 2026 may set records for layoffs within the sector.
News Courtesy of Eurogamer
