Electronic Arts is making big moves by restructuring its studios into two separate organizations.
First up, we have EA Entertainment, which will handle the publisher's owned and licensed games. It'll be led by Laura Miele, the new president of EA Entertainment, Technology & Central Development. Under this division, we've got Vince Zampella in charge of the studios responsible for Apex Legends, Star Wars, and Battlefield games. Samantha Ryan will handle the lifestyle franchises and blockbuster single-player games, while Jeff Karp stays in charge of the mobile games business.
On the other side, we have EA Sports, with Cam Weber as the president overseeing the sports and racing games. EA CEO Andrew Wilson believes this restructuring will give the studio leaders more creative ownership and financial accountability, leading to faster decisions and greater success.
Now, this restructuring plan does come with some downsides, unfortunately. EA plans to cut around 6% of its workforce, which could result in the layoff of approximately 775 employees.
This move is part of a larger plan that could lead to charges of up to $200 million for the company. These charges include things like intellectual property impairment, employee severance costs, office space reductions, and other miscellaneous expenses. It's a tough situation, but EA is hoping these changes will drive growth and deliver long-term value for its people, players, and communities.