Electronic Arts lays off 400 in latest blow to beleaguered gaming industry

Electronic Arts (EA) has announced it will reduce its global workforce by 3%, which amounts to approximately 400 jobs. The company also plans to shut down BioWare, a studio known for the Mass Effect series. These cuts are the first major changes at EA since the gaming giant went private in a $55 billion leveraged buyout in September.

The buyout, done by Saudi Arabia’s Public Investment Fund, Silver Lake, and Jared Kushner’s Affinity Partners, put $18 billion in debt on EA’s books, requiring high annual interest payments. Company leaders told investors they plan to cut up to $700 million in annual R&D and operational costs to manage these payments.

EA, headquartered in Redwood City, California, is a major player in the gaming industry, known for popular titles like Battlefield, The Sims, and Madden. The gaming industry has seen significant job losses since 2022 due to overexpansion post-COVID and rising production costs. In 2026 alone, an estimated 12,144 layoffs occurred across 161 gaming companies, according to journalist Mike Straw.

A June survey from the Game Developers Conference (GDC) revealed that one-third of all U.S. video game professionals have been laid off in the past two years. Industry turbulence may continue, with reports suggesting Xbox could undergo three rounds of cuts in the coming months. Microsoft’s Xbox division leader recently stated the company is "resetting Xbox" and plans to cut 3,200 employees in fiscal 2027.

This comes after Microsoft CEO Satya Nadella reassured in March that the company was "long on gaming" despite previous rumors of completely shutting down Xbox.

In response to these cuts, EA has refocused its efforts on three priorities: maintaining focus on successful projects, expanding into underserved markets like Asia, and creating new ways for fans to engage with sports. EA also announced it will heavily invest in the Apex Legends franchise and bring together its Respawn and DICE studios to work on an unannounced project, widely believed to be Star Wars: Battlefront 3.