It’s crazy to think I ever considered working in the video game industry as “job security.”
If 2023 proved that there is nothing secure about working in that industry, 2024 is absolutely hammering that point home.
Titanic video game publisher Electronic Arts announced late Wednesday that the company would be reducing its workforce by “approximately 5 percent.”
If EA sounds at all familiar to you, it’s because the company is an absolute conglomerate with tendrils in virtually every aspect of gaming.
From hardcore simulation games like “Madden” and the upcoming college football video game to casual, breezy gaming experiences like “Bejeweled,” to just about everything in between, EA has quite the portfolio.
However, that robust portfolio did not prevent the company from following suit with many other video game industry leaders.
EA CEO Andrew Wilson addressed the pending layoffs in a letter to employees.
“We are also leading through an accelerating industry transformation where player needs and motivations have changed significantly,” Wilson wrote. “Fans are increasingly engaging with the largest IP, and looking to us for broader experiences where they can play, watch, create content, and forge deeper connections.”
Wilson added: “Given how and where we are working, we are continuing to optimize our global real estate footprint to best support our business.
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“We are also sunsetting games and moving away from the development of future licensed IP that we do not believe will be successful in our changing industry.”
According to IGN, at least one major “Star Wars” project has been shelved, though more cancellations may be announced as the dust continues to settle.
“In this time of change, we expect these decisions to impact approximately 5 percent of our workforce,” Wilson continued. “I understand this will create uncertainty and be challenging for many who have worked with such dedication and passion and have made important contributions to our company.
“While not every team will be impacted, this is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams.”
IGN reports that a five percent reduction in the workforce will account for about 670 layoffs.
That IGN report also points out a harrowing juxtaposition: There were approximately 10,000 video game industry layoffs in 2023.
Just about three months into 2024? That layoff total has already hit about 8,000 this year.
And this isn’t a matter of scope and size.
EA is a veritable titan in the video game industry and is not immune to the realities of the current economic climate.
But if that’s enough proof for you, look at two of the three main console makers in the video game space.
Both Sony (makers of the PlayStation) and Microsoft (makers of the Xbox) have gone through similar workforce reductions in 2024.
Sony laid off approximately 900 people across various PlayStation studios — including the complete shuttering of Sony’s London Studios — in an announcement made Tuesday.
Microsoft suffered even more widespread layoffs, as the tech titan laid off nearly 2,000 employees in an announcement made in late January.
