Electronic Arts may be preparing for another major round of job cuts following its transition into a privately owned company. Bloomberg reporter Jason Schreier says EA told debt investors that it plans to reduce annual costs by nearly $700 million, including $170 million through what the publisher calls “organizational efficiencies.” Schreier interpreted that language as a warning of mass layoffs.
In Brief:
- EA is reportedly targeting nearly $700 million in annual cost savings.
- Around $170 million is expected to come from “organizational efficiencies.”
- Schreier believes the plan signals mass layoffs at the publisher.
- EA has not confirmed the number of jobs or studios that could be affected.
The cost-reduction target was presented to investors financing EA’s $55 billion take-private deal. The acquisition, led by Saudi Arabia’s Public Investment Fund alongside Silver Lake and Affinity Partners, officially closed on August 4, 2026. The transaction includes approximately $20 billion in debt financing and has been described as the largest leveraged buyout in history.
Previous reports suggested that EA’s new owners expected to generate nearly $700 million in savings over the coming years. While “organizational efficiencies” can include restructuring, reduced overhead and other operational changes, Schreier believes the $170 million target points directly toward substantial workforce reductions.
Which EA Studios Could Be Affected?
EA has not publicly identified any studios, departments, or employees connected to the reported savings plan. Therefore, claims that layoffs will definitely affect several EA studios remain unconfirmed.
However, the publisher has already conducted multiple rounds of layoffs. Between 300 and 400 positions were eliminated in 2025, including around 100 roles at Apex Legends developer Respawn Entertainment. EA also cut an undisclosed number of employees across Battlefield studios Criterion, DICE, Motive and Ripple Effect in March 2026.
The reported $700 million savings target is credible, but “mass layoffs” remains Schreier’s interpretation rather than a formally announced EA plan. No specific headcount, timeline, or affected studio list has been confirmed. Until EA provides further details, widespread layoffs appear increasingly possible, but their exact scale remains unknown.
