EA announces it will cut 6% of workforce
Electronic Arts Inc. (EA) said in a filing with the US Securities and Exchange Commission (SEC) on Wednesday that it will cut 800 jobs or approximately 6% of its workforce and implement office space reductions as part of its restructuring plan.
EA added that it expects to incur approximately $170 million to $200 million in charges in connection with the restructuring plan. "These charges consist primarily of approximately $65 million to $70 million in charges related to intellectual property impairment, approximately $55 million to $65 million related to employee severance and employee-related costs, approximately $45 million to $55 million associated with office space reductions, and approximately $5 million to $10 million of other charges, including contract cancellations," EA noted.
The company also stated it plans to complete the actions by the end of September.