Electronic Arts To Let Go 6% Employees To Cut Costs, Pare Real Estate Presence

On March 29, Electronic Arts Inc EA disclosed a restructuring plan to reduce headcount by approximately 6% of the company's workforce, in addition to office space reductions.
The company expects to book charges of $170 million - $200 million for the restructuring.
The restructuring prioritizes the company's growth opportunities and optimizes its real estate portfolio.
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The restructuring will likely be substantially complete by September 30, 2023.
In the middle of 2022, it said it had nearly 13,000 employees. That would translate into around 780 job cuts. The company said it plans to redeploy some of the affected employees to other areas, the Wall Street Journal reports.
The videogame industry faced challenges following the pandemic recovery. Other big publishers, including UbiSoft Entertainment Inc UBSFY and Take-Two Interactive Software, Inc TTWO, have also recently made strategic changes.
In January, Electronic Arts posted third-quarter net revenue of $1.88 billion, up from last year's $1.79 billion.
Net bookings over the trailing 12 months were $7.15 billion for the company, a 1% decline year-over-year.
The company ended the third quarter with 650 million members of the EA player network.
Price Action: EA shares traded lower by 0.98% at $118.02 premarket on the last check Thursday.