Recently, EA completed a $55 billion leveraged buyout led by a consortium headed by Saudi Arabia's Public Investment Fund, transitioning the company into a private entity while saddling it with $18 billion in massive debt and high interest payments. To repay the debt, EA has pledged to cut $700 million in operating costs annually, with $170 million coming from so-called "organizational efficiency optimizations." Recently, anonymous internal employees shared with Game Developer the tense and oppressive work atmosphere within the company following the completion of the acquisition.
Despite EA's previous reassurances that "employee roles would not change immediately," many employees report that everyone is under the threat of layoffs. Some staff worry that the company may adopt a model of small-scale, phased layoffs to circumvent U.S. official warning laws targeting mass layoffs. Other employees bluntly stated that, based on past industry precedents for leveraged buyouts, projects and studios failing to meet expectations are likely to be disbanded or sold off directly.
EA had already carried out layoffs before this acquisition was finalized. This spring, four studios involved in the development of Battlefield 6 faced staff reductions, despite the game being officially hailed as the most successful launch in the series' history. Financial reports show that EA CEO Andrew Wilson earns 305 times the annual income of an average employee, and under the acquisition agreement, he could receive up to $125 million in severance pay. In contrast, ordinary developers at the company have no such protections.
An EA employee admitted that the greatest uncertainty lies in the timing and scale of layoffs; as long as the company's cash flow declines rather than grows, it spells bad news for rank-and-file employees. Foreign media outlet GamesRadar has sought comments from EA officials regarding these issues but has yet to receive a response.