By In a message circulated internally to all personnel, recently unveiled by the US Securities and Exchange Commission, EA informs staff concerned about job cuts that there won’t be “immediate” modifications to any positions or teams due to the agreement.
Noticed by journalist Stephen Totilo, the SEC document includes “a staff FAQ made accessible” to all EA personnel on September 29, following closely after the sealing of the agreement which will result in EA becoming private through a $55 billion acquisition that involves $20 billion in liabilities assuming it concludes as scheduled. In the FAQ, EA management mentions it anticipates the deal “to finalize in the upcoming six to nine months.”
“Will private ownership result in layoffs?” one section inquires. “There will be no direct changes to your role, team, or daily responsibilities, as a result of this agreement,” EA reassures. “Our emphasis is on fostering innovation, and extending our global influence, which necessitates elite teams, who are eager to craft the future of entertainment.”
It remains vague whether EA implies there won’t be “immediate changes” right now, in six to nine months, or in the ensuing year or two. However, EA staff have already voiced their apprehensions that “job cuts typically follow those types of acquisitions.”
They aren’t alone in this sentiment. The $20 billion debt will need servicing, historical consolidation often leads to job losses, and EA may very well be downsized as its new overseers aim to boost returns.
Respected industry analyst Serkan Toto of Kantan Games conveys to GamesRadar+ that fears regarding layoffs or studio closures at EA “are not mere anxieties, but at least in my view, real occurrences that we will witness unfold going ahead.”
“I do not foresee the new proprietors implementing drastic changes ‘next week’, but rather in the very near future,” he remarks.
David Cole, CEO of research and consulting agency DFC Intelligence, opines that “studio closures and layoffs are feasible but I believe it is more probable that EA will strive to divest smaller studios and franchises to optimize value and utilize it to reduce debt.
“This could even involve selling off specific franchises,” he conveys to GamesRadar+. “DFC has a forthcoming report assessing the worth of particular legacy franchises (e.g., SimCity, Dragon Age, Plants vs Zombies, Bejeweled, Command and Conquer and many more). There could be substantial value in these franchises but they are not immediate core earners for EA. However, they could attract a variety of prospective buyers.”
In its FAQ, EA also tackles worries that this agreement will result in modifications to the company’s culture. It does not directly confront concerns that considerable investment and future oversight from Saudi Arabia’s Private Investment Fund, assisted by private equity firm Silver Lake and Jared Kushner’s investment firm Affinity Partners on the purchasing list, could lead to cultural transformations or alterations to EA games aimed at complying with Saudi Arabian standards.
“Will our culture undergo a transformation due to this deal?” EA inquires.
“Our mission, principles, and dedication to players and fans globally remain intact,” the reply states. “We will persist in being guided by our cultural values of creativity, pioneering spirit, passion, determination, learning, and collaboration. The Consortium is supportive of and committed to investing in our remarkable employees and our robust culture.” (“The Consortium” pertains to the buyers.)
While there is a notion that similar buyouts are often pursued or endorsed by struggling enterprises, EA emphasizes that it is “in a solid financial condition” and the agreement simply “provides us the capability to operate more swiftly and unlock new prospects on a global scale.”
Andrew Wilson “will continue as CEO, and there are no alterations to the executive team as a result of this agreement.”
“Why did the Board endorse this proposal to take EA private?” the initial item in the FAQ states. “What are their obligations to shareholders?”
The answer is predictably stakeholder-focused: “The Board diligently assessed this opportunity and concluded it offers compelling value for shareholders and is in the best interests of all EA stakeholders.”
EA employees with vested (or unvested) equity in the company “will receive the deal premium stock price of $210 in cash for each vested EA share” (or equivalent cash award), another section clarifies.
EA also commits to retaining current compensation and benefits, but adds: “We will revise our ESPP program in anticipation of closing. Over the upcoming months, we will collaborate with the Consortium to evaluate our programs and adjust if necessary, to facilitate this next phase of EA’s future.”
EA’s bonus program “will proceed as planned, and bonus distributions are expected to occur in June 2026.”
The company highlights that if “queried by a member of the media or an investor,” employees “should refrain from commenting or speaking on behalf of EA” and instead direct inquiries to corporate.