Electronic Arts Approved Restructuring Plan; To Cut About 5% Of Workforce; Sees Charges Of ~$125M-$165M In Connection With Plan
Portfolio Pulse from Charles Gross
Electronic Arts (EA) has announced a restructuring plan which includes cutting about 5% of its workforce. The company expects to incur charges of approximately $125M-$165M in connection with this plan, as detailed in a letter from the CEO.
February 28, 2024 | 9:28 pm
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Electronic Arts is undergoing a restructuring that involves a workforce reduction of about 5% and anticipates charges between $125M-$165M.
The announcement of workforce reduction and the associated restructuring charges are likely to create uncertainty among investors and could negatively impact EA's stock price in the short term. The significant costs involved and the potential for operational disruptions during the restructuring process may also contribute to negative sentiment.
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