EA cancels Star Wars Game and cuts 670 jobs in global restructuring

Electronic Arts (EA) is scrapping an in-development Star Wars game and implementing a global workforce reduction, affecting approximately 670 employees, or 5% of its workforce, BBC reported.

The cancelled game, a first-person shooter set in the Star Wars universe, was in early development. EA stated that the restructuring aims to "deliver deeper, more connected experiences for fans."

This move reflects a broader trend of job cuts in the gaming industry. EA previously announced layoffs at UK developer Codemasters in December 2023, known for games like F1 23 and EA Sports WRC. 

The industry has witnessed substantial workforce reductions, with Microsoft revealing plans in January to cut 1,900 jobs in its gaming division, including positions at Activision-Blizzard, recently acquired by Microsoft. Sony also recently disclosed plans to cut 900 staff and close its London Studio.

In a letter to staff, EA CEO Andrew Wilson explained the decision to develop fewer new titles, emphasising a focus on owned intellectual property, sports, and online communities. 

The cancellation of the Star Wars title being developed by Respawn Entertainment, responsible for Star Wars Jedi: Survivor, was confirmed in an email from EA entertainment boss Laura Miele.

Analysts attribute the industry-wide layoffs to increased competition and the gaming sector entering a more mature phase. Despite the layoffs, the gaming industry remains robust, with projections estimating substantial growth, reaching approximately $223 billion by 2030. 

The recent measures reflect a strategic shift toward efficiency, profitability, and competitive capabilities in the evolving gaming landscape.