In a troubling development that reflects broader tensions in the American gaming industry, Electronic Arts has reportedly eliminated between 300 and 400 positions at Respawn Entertainment, the acclaimed developer behind Apex Legends and the Star Wars Jedi franchise.
This latest round of cuts, coming amid EA’s disappointing financial performance and growing investment in generative AI, signals a concerning shift in priorities that could reshape how major U.S. game studios approach creative development and workforce management.
The Human Cost Behind Corporate Communications
Respawn Entertainment‘s carefully worded social media statement announced the company would “step away” from two “early-stage incubation projects” – one reportedly being an Apex Legends extraction shooter codenamed “R7” – while making “targeted team adjustments” to both the Apex Legends and Star Wars Jedi teams. The studio claimed it’s “offering meaningful support to those impacted, including exploring new opportunities within EA,” language that mirrors previous corporate communications preceding mass layoffs.
Bloomberg News reported the cuts affect between 300 and 400 positions, while IGN indicated over 100 Respawn employees have been “impacted,” though it remains unclear how many will find positions elsewhere within EA’s corporate structure. This represents the second time in 2025 that EA has employed this communication strategy, following similar language from BioWare in January that masked actual job losses.
Analysis: A Pattern of Workforce Reduction Amid Record Profits
These layoffs continue a troubling pattern for Electronic Arts, which spent $125 million laying off approximately 5 percent of its workforce, around 670 employees, in 2024. Last year’s cuts included the closure of Battlefield support studio Ridgeline Games and the cancellation of a first-person Star Wars game at Respawn, with EA stating the developer would pivot to franchises owned directly by EA.
If today’s reported numbers are accurate, EA has eliminated nearly 1,000 jobs since early 2024, a period during which the company cited “underperformance” of titles like Dragon Age: The Veilguard and EA Sports FC 25. Simultaneously, EA has publicly embraced generative AI technology, though specific implementation plans remain unannounced.
The American Context: Labor Concerns in an AI-focused Industry
The gaming industry’s wave of layoffs mirrors broader American corporate trends where companies simultaneously announce job cuts and increased AI investment. This pattern has fueled growing labor organizing efforts across the U.S. tech sector, including at Microsoft-owned ZeniMax, where unionized workers continue pressing for improved contract terms.
For Respawn specifically, the future appears uncertain beyond the development of the third Star Wars Jedi game and supporting BitReactor on Star Wars: Zero Company. The studio, which previously developed critically acclaimed titles like Titanfall, appears to be narrowing its creative focus despite its track record of innovation.
What Does This Mean for the Future of Game Development?
The juxtaposition of mass layoffs against EA’s AI investments raises profound questions about the company’s long-term creative strategy. Industry observers note that EA seems to be prioritizing generative AI and in-game advertising over the development of original game concepts, having canceled numerous projects over recent years while reducing its creative workforce.
This approach reflects a concerning trend in American game development, where publicly traded companies increasingly prioritize predictable revenue streams and technological efficiency over creative risk-taking and workforce stability. For developers, this shift threatens both job security and creative autonomy in an industry already known for challenging working conditions.
As the gaming industry continues its technological evolution, the human cost of these transitions remains a critical concern for workers, players, and the long-term health of interactive entertainment as a creative medium. With nearly 1,000 skilled professionals displaced from EA alone since 2024, the industry faces serious questions about sustainable development practices and responsible innovation in the AI era.
