Electronic Arts to cut 5% of workforce in restructuring plan

Investing.com -- Electronic Arts will cut 5% of its workforce and reduce its office space as part of restructuring plan to cut cost amid a difficult backdrop of video game makers, the company said in a filing with the Securities and Exchanged Commissions on Wednesday.

Under the restructuring effort, expected to be completed by year-end, the company will also scrap plans for video games that were potentially in the pipeline, resulting in costs of $35 million to $45 million associated with licensor commitments, taking the expected total cost of the restructuring of $125 million to $165 million.

Electronic Arts Inc (NASDAQ: EA) rose slightly in afterhours trading following the news.

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