Employment Law

Electronic Arts laying off 5% of workforce, reducing office space

A photo of a person interacting with a computer. (Photo: ELLA DON / Unsplash)

Video game giant Electronic Arts (EA) is eliminating approximately five per cent of its workforce as it restructures its business.

What’s happening at EA?

In a recent regulatory filing, the company said the job cuts are part of a plan to align “its portfolio, investments, and resources in support of its strategic priorities and growth initiatives.”

EA estimates that it will incur approximately US$125 million to US$165 million in restructuring charges.

“These charges consist of approximately $50 million to $65 million associated with office space reductions, approximately $40 million to $55 million related to employee severance and employee-related costs, and $35 million to $45 million in costs associated with licensor commitments,” the filing reads.

The company expects its restructuring plan to be “substantially complete” by the end of December.

EA Layoffs: 6% of staff being cut, restructuring teams
Sony slashing 900 jobs, closing PlayStation London studio
Microsoft eliminating 1,900 Activision Blizzard and Xbox roles

Impact on Canadian staff

It remains unclear if any Canadian employees at EA will be let go.

According to the company’s LinkedIn page, it has more than 3,300 workers in the country.

Termination agreements for EA Canada employees

In Canada, non-unionized employees at EA are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

• Severance for provincially regulated employees
Rights to severance for video game sector staff
Severance packages during mass layoffs

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Major tech layoffs continue

The job cuts at EA come amid a flurry of tech sector layoffs in 2024.

Big names, including Rivian, Cisco, Mozilla, Instacart, Grammarly, Amazon, DocuSign, Snap, Zoom, Okta, PayPal, Salesforce, eBay, Wayfair, and YouTube, have also pulled out the axe as they continue to navigate challenging economic conditions.

• Firm launches $130M class action against Shopify for breach of contract
Boundless Learning laying off 15% across company: Reports
Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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