The key facts
- EA will cut about 400 employees — 3% of staff, including 50 people at BioWare
- BioWare is being closed, the next Mass Effect and a The Sims project (Project Lotus) have been cancelled
- The restructuring follows the $55 billion purchase of EA with $18 billion in debt
Massive EA restructuring
Electronic Arts plans to lay off about 400 employees, roughly 3% of the American video game publisher's staff, and close the BioWare studio, Bloomberg reported on Wednesday. Among those laid off are 50 employees of BioWare, the studio behind the popular Mass Effect and Dragon Age franchises.
Cancelled projects
According to the outlet, EA will cancel the next game in the Mass Effect series, as well as a planned game set in The Sims universe under the codename Project Lotus. In addition, the team developing the skateboarding game skate. will be reduced.
Management's explanation
In an internal letter, EA's top executives said the company had reviewed its operations and decided to cancel a number of projects to cut costs. “Across our portfolio, we are making deliberate choices, directing talent and investment to where we see the greatest opportunities for players and long-term growth,” they wrote. EA said it will continue to invest in sports games, Apex Legends, Battlefield, as well as future projects based on the Star Wars and Marvel universes.
BioWare's fate and deal context
BioWare, founded in 1995 and acquired by EA in 2007, has struggled in recent years due to unsuccessful releases and declining sales. The restructuring follows the $55 billion purchase of EA led by Saudi investors, completed in August: the deal took the company private and added $18 billion in debt.
