Technology firms have led the latest round of layoffs as US
companies brace for a potential economic downturn amid rising interest rates
around the world.
Meta Platforms and Amazon.com announced a second round of
job cuts this month. Tech layoffs hit 63,000 in the first two months of the
year, according to data from Challenger, Gray & Christmas Inc.
EA, which had about 12,900 staff at the end of March last
year, expects to incur between $170 million and $200 million in charges related
to the restructuring.
"As we drive greater focus across our portfolio, we are
moving away from projects that do not contribute to our strategy, reviewing our
real estate footprint, and restructuring some of our teams," CEO Andrew
Wilson said in a blog post.
EA, behind the "FIFA" soccer videogame franchise
and "The Sims", will provide opportunities for employees to move to
other projects and where that is not possible will provide severance pay and
additional benefits, Wilson said.
Video game publishers are also struggling with a slowdown in
player spending in the face of decades-high inflation, a change in fortunes
from the meteoric growth witnessed during the pandemic.
Video game sales so far this year were flat and spending on
video game content across platforms is down 2 percent, according to analytics
firm Circana.
Electronic Arts lowered its annual bookings forecast in
January after it delayed the release of a game based on the "Star
Wars" franchise.
Newly launched Hogwarts Legacy game from Warner Bros
Discovery topped the videogame sales charts in February, according to Circana. ©
Reuters
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