While many layoffs are expected to kick off quite soon, it looks like Electronic Arts has already started its rounds. According to industry analyst Destin Legarie, the first round of layoffs to have hit EA might be relatively small. However, more are expected to happen.
In a social media post, Legarie noted that the affected EA staff is currently being notified of the fact. While precise details about the scale of these layoffs is currently unknown, the analyst cites sources in stating that multiple divisions across the company are going to be affected by cuts.
“Unfortunately, I’m hearing from reliable sources that layoffs are starting at EA, though the initial round may be relatively small,” he wrote. “Staff are being notified that they are being let go, and I’m told the cuts are impacting multiple parts of the company.”
While reports had previously indicated that only Xbox’s studios are largely going to be targeted for layoffs after Microsoft wraps up its fiscal year on June 30th, others have noted that layoffs and studio closures are going to be widespread in the industry. French journalist Sylvain Trinel, for instance, indicated that Microsoft’s layoffs are going to be “just the beginning of a massive bloodbath.”
Along with Xbox-owned studios like Bethesda, Trinel also said that other publisher-owned studios, like DON’T NOD and Quantic Dream, are also under threat of impending job cuts and potential closures. “The echoes I’ve been able to pick up tonight are far from encouraging,” they wrote. “This is really just the beginning.”
EA suffering from layoffs shouldn’t really come as much of a surprise, since the company is likely attempting to appear sleeker and more efficient in light of its acquisition by an investor consortium made up of Saudi Arabia’s Public Investment Fund, Affinity Partners, and Silver Lake Partners. The deal was approved by shareholders in December, and the company is currently waiting for approval from regulatory bodies. Valued at $55 billion, the acquisition is being done through a structured deal, which would put quite a bit of debt on EA itself.
Developers at BioWare had already begun worrying about potential layoffs as soon as the acquisition was announced. Some noted that they have already been preparing for the worst by making sure that their portfolios are up to date. “I’ve been doing it since last year, but I’m making sure I have a portfolio ready and feelers out for other jobs,” said one developer. “Kind of feels like a matter of time.”
As for Microsoft, the company has reportedly already begun its culling of employees. According to the co-founder of the original 3D Realms and Apogee, George Broussard, essentially anyone at Bethesda that isn’t currently working on a new Fallout or The Elder Scrolls project is at risk of being laid off.
“Getting word that layoffs at Zenimax has begun. Heard rumblings recently that the cuts may be much deeper than you expect. Buckle up,” he wrote.
However, much like with EA, Microsoft has likely only begun informing its employees of the fact, and the layoffs will probably kick in after the end of the fiscal year.
