Videogame publisher Electronic Arts said on Wednesday it will lay off about 6% of its workforce and reduce office space, joining a host of U.S. companies that have trimmed costs to cope with a rough economy.
The EA, which had around 12,900 staff as of March-end last year, expects to incur between $170 million and $200 million in charges related to its restructuring plan.
Corporate America, especially companies from the technology and finance sector, are reining in expenses as they prepare for a looming recession due to rising interest rates around the world.
The company behind the FIFA soccer videogame franchise and The Sims said it would move away from projects that don't contribute to its strategy.
EA will provide employees with severance pay and additional benefits and will allow them to move to other projects where that is not possible, according to Andrew Wilson, CEO of the company.