“As we put more focus on our portfolio, we’re moving away from projects that don’t contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams,” Wilson said. “These decisions are expected to affect approximately six percent of our company’s workforce.”
While Wilson did not name specific departments affected by the layoffs, he said it would provide “opportunities for our colleagues to move on to other projects” if possible. As mentioned by Diary, EA reported having about 13,000 employees last year, which means a 6 percent cut could eliminate about 780 jobs. The company began notifying some affected workers earlier this quarter and said it expects that to “continue early next fiscal year.”
Affected workers will receive severance pay, health care, and relocation services. According to an 8-K form filed along with the Securities and Exchange Commission, EA will incur approximately $170 million to $200 million in charges related to the layoffs and restructuring.