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The cancellation of an upcoming Star Wars first-person shooter was due to a strategic decision.
Video game company Electronic Arts (EA) has announced plans to lay off 5 percent of its workforce, resulting in over 650 employees losing their jobs. The decision is part of a broader restructuring effort by the company, which includes cutting back on office space and discontinuing work on certain video games. The layoffs were disclosed in a report filed by EA with the Securities and Exchange Commission.
This move by EA reflects a trend of layoffs within the video game industry that has been ongoing since last year. In 2023 alone, more than 10,500 video game workers lost their jobs, with an additional 6,000 layoffs occurring in January of this year. Other major video game companies, including Microsoft, Riot Games, and Unity, have also implemented layoffs.
The impact of these layoffs will be felt directly on the development of a Star Wars first-person shooter game being worked on by Respawn, a game development studio that EA acquired in 2017. According to IGN, work on this game has been cancelled, although EA Entertainment president Laura Miele assured staff that the decision was not a reflection of their talent or dedication.
EA CEO Andrew Wilson stated in a memo to employees that the company is streamlining its operations to focus on delivering deeper and more connected experiences for fans. The layoffs will enable EA to prioritize its owned intellectual property, sports games, and online communities.
The video game industry has been facing numerous challenges, including widespread layoffs and studio closures. However, NetEase is bucking the trend by opening a new studio led by a former Call of Duty multiplayer designer.