EA’s announcement comes a day after the news that Sony PlayStation would be downsizing its global workforce by 8%.

Electronic Arts (EA) announced on Wednesday that it is slashing its workforce by about 5%, aligning with the growing trend of cost reductions throughout the video game industry.

EA, known for “FC24”, is cutting some projects while ending others deemed less promising, says CEO Andrew Wilson. The firm plans to cut around 670 jobs, focusing more on its own IPs, sports games, and online communities.

While Wilson did not specify all the games to be discontinued in his announcement, he confirmed the closure of two mobile games: F1 Mobile Racing and MLB Tap Sports, instead choosing to focus on areas with the most growth potential and strategic importance to EA.

Despite having collaborated on major titles featuring franchises like Star Wars, Marvel’s Black Panther, and Iron Man (all of which are still in development), the company has announced its decision to reassess its strategy regarding licensed content in response to the evolving market dynamics.

CEO Andrew Wilson has noted that the company towards focusing on its own IPs, sports games, and online communities, moving away from projects with licensed IPs from others. This shift is part of the company’s second major restructuring in two years, following a 6% workforce reduction last year, affecting about 775 employees.

The announcement of EA’s job cuts came just one day after Sony revealed its own workforce reduction of 8%. Sony Interactive Entertainment made a startling announcement on its website about its decision to lay off around 900 employees, a move that has sent shockwaves through the gaming industry.

Sony has mentioned that it faced challenges in fulfilling the demand for its PlayStation 5 console, launched towards the end of 2020. This was largely due to persistent supply chain issues, eventually leading to a milestone of 50 Million Units Sold to Consumers in 2023.