EA will be considering 'mass layoffs' soon after going private

EA just closed its record $55 billion buyout, and it looks like the bill for that deal is about to land squarely on its employees. According to journalist Jason Schreier on Bluesky, EA has told debt investors it plans to cut $700 million in annual costs, including $170 million in "organizational efficiencies."

Schreier notes EA's annual EBITDA sits around $1.5 billion, which should technically cover the roughly $1.8 billion a year in interest payments tied to the $18 billion in debt used to fund the buyout. Even so, EA apparently wants that debt paid down faster, and as Schreier put it bluntly, that means mass layoffs.

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This wouldn't be new territory for EA. The publisher already cut 300 to 400 jobs in 2025, including around 100 at Respawn Entertainment alongside a canceled Titanfall project, then followed that up in March 2026 with layoffs across its Battlefield studios, hitting Criterion, DICE, Motive, and Ripple Effect.

Now that EA is privately owned by Saudi Arabia's PIF, Silver Lake, and Affinity Partners, there's less shareholder scrutiny between leadership and further cuts, and the CWA labor union already warned about this outcome before the deal even closed.

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Moreover, EA isn't alone here either. The games industry has been stuck in a rough stretch for a while, and Ubisoft is probably the clearest example. The publisher has closed multiple studios and laid off hundreds of workers as part of a years-long restructuring effort, and it recently cut 51 employees from the team behind Assassin's Creed Black Flag Resynced, despite that remake performing well commercially. Ubisoft's workforce has also shrunk by roughly 20% since 2022, and it isn't the only publisher trimming down this hard.

For the people actually making these games, this is a rough pattern to keep watching play out. A publisher can post strong sales, ship a hit, and still see its teams cut down afterward because the money now has to answer to debt holders and private investors instead of quarterly earnings calls. Private ownership means EA no longer has to justify decisions to public shareholders, just to the group that financed the buyout and wants its money back quickly.

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As far as the average gamer goes, the long-term worry is less about any single round of layoffs and more about what EA prioritizes going forward. Games with long development cycles, big budgets, or uncertain payoffs are the ones most likely to get squeezed, while safer bets like EA Sports FC, Madden, and Apex Legends probably stay protected.

Frequently Asked Questions

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Question #1

How much annual cost-cutting has EA told investors it plans to achieve after the buyout?

EA has told debt investors it plans to cut $700 million in annual costs after the buyout, including $170 million in "organizational efficiencies."

Answered

Question #2

What portion of the $700 million cuts is attributed to "organizational efficiencies"?

The article states that $170 million of the $700 million in annual cuts is attributed to "organizational efficiencies."

Answered

Question #3

How does EA's reported annual EBITDA compare to the interest payments on the debt used for the buyout?

The article says EA's annual EBITDA is about $1.5 billion, while interest on the buyout debt is roughly $1.8 billion per year. That means EBITDA is slightly below the annual interest payments and does not fully cover them.

Answered

Question #4

Which EA studios and teams were previously affected by layoffs in 2025 and March 2026 as mentioned in the article?

The article says EA cut 300 to 400 jobs in 2025, including around 100 roles at Respawn Entertainment tied to a canceled Titanfall project. It also reports March 2026 layoffs across its Battlefield studios, hitting Criterion, DICE, Motive, and Ripple Effect.

Answered

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For now, these layoffs remain a grim prediction. There are no official numbers or timing yet, but given the direction the rest of the industry has taken this year, layoffs would not be a surprise.