The steady drumbeat of tech layoffs continued this week, with video game giant Electronic Arts announcing it would cut 6% of its workforce.
The Redwood City-based publisher of games including "The Sims" and "Madden NFL" announced the layoffs Wednesday in a note from its CEO Andrew Wilson.
"As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams," Wilson wrote in a letter published on the company's website.
The cuts are expected to affect around 800 employees globally; it was not clear which office locations would be impacted. In California, Electronic Arts has offices in San Francisco, Redwood City, Foster City and Sacramento, according to the company's website. A company representative declined to provide information beyond what was stated in the CEO's letter.
The company expects to spend around $170 million to $200 million on the restructuring, according to a regulatory filing. It is estimated to be complete by the end of September.
The news of mass layoffs at tech behemoths shows no signs of abating, and experts say the impact is starting to reflect in the local economy. The latest figures show that San Francisco’s unemployment rate is starting to tick up after a year of companies shedding jobs.
"The number of unemployed residents of San Francisco jumped by 4,500 in January, according to the BLS,” city economist Ted Egan told The Standard earlier this month. “This was the largest jump since the start of the pandemic.”