Video game giant Electronic Arts plans to lay off 350 employees as it adapts to a fast-evolving market.
CEO Andrew Wilson announced the move in a blog post Tuesday, saying “as we look across a changing world around us, it’s clear that we must change with it.”
EA employs 9,000 people company wide. In his note, Wilson said EA was making changes to its marketing and publishing organization, as well as operations teams. Additionally, the company is “ramping down our current presence in Japan and Russia,” Wilson wrote.
“These are important but very hard decisions, and we do not take them lightly,” he said. “We are friends and colleagues at EA, we appreciate and value everyone’s contributions, and we are doing everything we can to ensure we are looking after our people to help them through this period to find their next opportunity.”
EA reported disappointing third quarter earnings in February, missing its revenue projection and citing “intense competition” as the primary reason. The company also lowered its future guidance.
Investors punished the company, but quickly warmed to it again with the release of the free-to-play game Apex Legends, which has quickly attracted a huge player base. It’s unclear if the success of Apex Legends has affected company management’s thinking on EA’s future direction.
EA stock was up by less than 1% on the news in mid-day Tuesday trading.