Tech layoffs: Electronic Arts, Roku lay off 6% of their staff

Amid the economic downturn and shifted market attention, the companies will eliminate many roles in different divisions

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Electronic Arts

Electronic Arts announced that it would be eliminating about 800 positions as well as downsizing its office spaces amid the recent economic downturn. The decision will affect 6 per cent of its workforce, the tech company announced on Wednesday.

In a message to employees, Andrew Wilson, CEO, Electronic Arts, stated that the company is shifting its focus to projects that align with its strategy. Alongside, it’s re-evaluating its real estate presence and reorganising certain teams. He also acknowledged the difficulty of the layoffs, promising that the process would be handled with care and respect.

Wilson stated that Electronic Arts would offer severance pay and healthcare benefits to the impacted workers, revealing that the layoffs had already commenced earlier in the quarter. The company has also mentioned that it will be more cautious and strategic, with specific attention to the speed of recruitment.

Roku

Roku, the streaming device makers, has announced another round of layoffs. In an 8-K filing with the US Securities and Exchange Commission, the company revealed that it will lay off another 200 workers, affecting 6 per cent of its workforce.

The company intends to use these cuts as part of a restructuring plan aimed at reducing year-over-year operating expense growth and prioritising projects that will yield a higher return on investment. The majority of these restructuring changes are scheduled to be finalised by the end of Q2 2023.

This comes just over four months after announcing a prior round of 200 layoffs in November 2022. The initial layoff primarily impacted its US employees, but the location of the affected workers in this latest round has not been specified in the filing.

 

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