Unfortunately, bad news keeps mounting within the gaming industry as Electronic Arts became the latest company unable to not resort to reducing their workforce to have a better front on challenging economics.

VGC saw a hold of a Security Exchange Commission entry by Electronic Arts which confirms that a plan on laying off 6% of its current workforce effective during this quarter.

Unfortunately the company needs workforce reduction as reportedly, EA CEO Andrew Wilson explained to the staff that Electronic Arts was “operating from a position of strength” that will see it leverage its biggest brands to build games with large communities, engage these players with social and creator tools, and deliver “blockbuster interactive storytelling.”

As for the SEC, Electronic Arts said that the 6% (approximately 775 employees as of March 2022) will be granted severance package and for next earning reports, investors should expect a cost of approximately $65 million to $70 million and additional  $45 million to $55 million associated with office space reductions, and approximately $5 million to $10 million of other charges, including contract cancellations.

While this is seen as counterproductive at short-term with immediate spending, this is all about the long term effect where companies like EA in this case, expects to deliver more and not overpromise within their available resources.

Like inflation, the post-pandemic boom reflects that many tech and gaming companies overestimated opportunities with new realities that the pandemic brought like remote work more accessible as ever and meant that many overhired people these past three years.