US-based video game company Electronics Art announced a restructuring plan, focused on aligning its portfolio, investments, and resources in support of its strategic priorities and growth initiatives.

As per the company’s filing with the regulator, the rationalisation plan includes a reduction in real estate and headcount, impacting approximately 5 per cent of the company’s workforce.

The company estimates that it will incur approximately USD 125 million to USD 165 million in total charges in connection with the plan. These charges consist of approximately USD 50 million to USD 65 million associated with office space reductions, approximately USD 40 million to USD 55 million related to employee severance and employee-related costs, and USD 35 million to USD 45 million in costs associated with licensor commitments.

The rationalisation plan is expected to be substantially complete by December 31, 2024.

On February 28, the Company’s Chief Executive Officer Andrew Wilson sent a letter to employees about the plan.

“…we are streamlining our company operations to deliver deeper, more connected experiences for fans everywhere that build community, shape culture, and grow fandom,” the CEO letter read.

“In this time of change, we expect these decisions to impact approximately 5 per cent of our workforce.”

“Our primary goal is to provide team members with opportunities to find new roles and paths to transition onto other projects. Where that’s not possible, we will support and work with each colleague with the utmost attention, care, and respect,” the letter further said, adding that communications regarding the plan has already begun and will be largely completed by early next quarter.

As of March 31 last year, the company reportedly had about 13,400 people.

Electronic Arts, Inc. engages in the provision of digital interactive entertainment. It develops and delivers games, content, and online services for Internet-connected consoles, mobile devices, and personal computers.

The company was founded by William M. Hawkins III and William Gordon in 1982 and is headquartered in Redwood City, CA. (ANI)

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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Published: 29 Feb 2024, 01:59 PM IST


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