Electronic Arts, a prominent Silicon Valley gaming company, has announced a business restructuring that includes the layoff of hundreds of employees and the closure of its BioWare studio. The decision, detailed in an employee memo released Wednesday, affects approximately 400 jobs, representing three percent of EA's global workforce, according to reporting from Variety. The shuttering of BioWare concludes the studio's 31-year history, during which it developed significant gaming franchises such as "Mass Effect" and "Dragon Age."
Following the announcement, BioWare stated in a social media post that it would focus on the transition of its staff. The studio also indicated a halt in development on another "Mass Effect" project. This restructuring marks a significant shift for the gaming giant, which is known for major franchises including "Battlefield," "The Sims," "Madden NFL," and "Dead Space."
Cam Weber, President and Chief Studios Officer, and David Tinson, President and COO of Electronic Arts, addressed employees in the memo. They stated that the company had recently taken "a hard look at our business" to determine its path forward in interactive entertainment. The executives noted that they had "made deliberate choices" following a review of assumptions and realities, aiming to deliver player experiences and drive sustained growth. EA's leadership indicated the company would prioritize three areas: deepening its core business, expanding its reach, and transforming its operations.
Concluding their memo on an optimistic note, Weber and Tinson conveyed that the decisions were made to enable the company's best work. They wrote that recent months had "strengthened our belief in what EA can become," citing the company's "extraordinary people" and important franchises. They added that their responsibility was to provide clarity and create conditions for teams to do their best work, ensuring games have the best chance to succeed. Electronic Arts was the subject of a $55 billion buyout deal completed in August, involving Affinity Partners, led by Jared Kushner, private equity firm Silver Lake, and Saudi Arabia’s Public Investment Fund.
Separately, another California-based tech company, eBay, also plans significant workforce reductions. The San Jose-headquartered company intends to lay off approximately 9% of its workforce, which amounts to about 1,000 jobs. CEO Jamie Iannone communicated this decision to staff in a memo reviewed by Reuters. At the end of last year, eBay employed 12,300 people.
Iannone asserted in his memo that the company's "strategy is working." He explained that capturing future opportunities requires "thoughtful choices about where to focus and invest." This marks the second round of layoffs for eBay, following an earlier reduction of about 6% of its workforce, or 800 employees, in February. That previous measure was undertaken as part of efforts to streamline operations.