2023-03-29 16:30:25 ET
- Electronic Arts ( NASDAQ: EA ) will cut some 6% of its workforce as part of a new restructuring plan.
- The board on Monday approved a restructuring plan "focused on prioritizing investments to the Company's growth opportunities and optimizing its real estate portfolio," EA said in an SEC filing after hours Wednesday.
- Along with the headcount reductions and associated office-space cuts, the plan includes actions driven by intellectual property impairment charges.
- EA estimates it's taking charges of $170M-$200M tied to the plan: about $65M-$70M in IP impairment; $55M-$65M tied to employee severance and employee-related costs; $45M-$55M tied to office space cuts; and about $5M-$10 in other charges.
- Of those, the company estimates some $80M-$100M will be future cash expenditures, and it expects the plan's actions to be substantially complete by Sept. 30.
- EA stock was up 0.5% postmarket shortly after the filing.
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Electronic Arts to cut 6% of workforce, take $170M-$200M in charges