Electronic Arts officially transitioned from a public to a private entity on August 5, following the closure of its $55 billion acquisition by a consortium comprising Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners.

The transaction ranks among the largest in video game history and has now set off widespread concern over its consequences, which rarely benefit employees.

Specialists Expect Mass Layoffs at EA Following Sale

According to reporting by Bloomberg journalist Jason Schreier, the post-sale landscape for EA’s workforce appears increasingly bleak.

While the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) stands at roughly $1.5 billion, a figure that would theoretically cover interest payments on the deal, internal sources have revealed that EA has already signaled to debt investors its intent to implement $700 million in cost reductions, described internally as “organizational efficiencies.” Schreier has said this most likely means mass layoffs in the next six to twelve months.

Jason Schreier

BioWare Could Be Sold Off

Beyond layoffs, close attention is now turning to the fate of EA’s underperforming studios and intellectual properties.

BioWare, once a powerhouse in Western role-playing games and now navigating its most challenging period, stands out.

Journalist Mike Straw of Insider-Gaming, who previously reported on the potential sale of BioWare, has reinforced those concerns, asserting that it is highly probable EA will sell studios and franchises to balance its finances.

It should be noted that BioWare currently has a new Mass Effect title in development, but the studio has struggled with waning interest in former blockbuster franchises such as Need for Speed and Dead Space.

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