Electronic Arts is cutting 5% of its workforce, impacting around 670 employees.

EA is cancelling several projects, including a highly anticipated Star Wars shooter game.

The company is shifting its focus to developing and supporting its own brands like Apex Legends and an Iron Man project.

EA's restructuring is in response to industry trends favoring owned IP and online communities over licensed IP development.

The company is budgeting $125 million to $165 million for severance and cost-cutting initiatives.

This layoff is part of a larger industry trend, with over 8,000 gaming industry jobs cut in early 2024.

Despite the layoffs, EA maintains a commitment to its relationship with Disney and Marvel and its iconic franchises.

EA's stock has risen despite the layoffs, reflecting investor confidence.