Electronic Arts (EA) has announced the cancellation of an upcoming Star Wars game and the impending layoff of approximately 670 employees, constituting 5% of its global workforce.
The game, which was in early stages of development, aimed to be a first-person shooter set within the expansive Star Wars universe. EA cited the need for “streamlining” to “deliver deeper, more connected experiences for fans” as the rationale behind this decision.
This move adds to a series of job cuts sweeping across the gaming industry. Rich Barham, a former executive at Blizzard, emphasized the challenges in obtaining funding for new game studios and the risk of losing top talent within the industry.
EA’s decision to trim staff follows their earlier announcement in December 2023 regarding layoffs at UK developer Codemasters, known for their racing titles. CEO Andrew Wilson mentioned contacting affected employees with plans for redundancies to be completed by summer and explained the company’s shift towards developing fewer new titles.
Laura Miele, EA’s entertainment head, revealed in an email to staff the cancellation of the upcoming Star Wars project by Respawn Entertainment, responsible for Star Wars Jedi: Survivor. Miele highlighted the popularity of Respawn’s existing titles among players.
This move coincides with recent layoffs in the gaming sector, including Microsoft’s plans to cut 1,900 jobs in its gaming division and Sony’s announcement of 900 staff reductions along with the closure of its London Studio.
Sarah Stevens of e-volveHR emphasized the human aspect of these layoffs, urging compassion amidst the turbulence. Karol Severin, senior analyst at Midia Research, noted the intensifying competition in the gaming industry, signaling a shift towards greater efficiency, profitability, and competitive capabilities.
Despite these challenges, Severin highlighted the industry’s substantial growth projections, foreseeing a $78 billion increase by 2030, underscoring its resilience and continued expansion compared to other entertainment sectors.
