Multi-Billion Electronic Arts Acquisition Could Lead to Massive Layoffs
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Key points
- Mass layoffs, more aggressive monetization, and other measures are expected to be implemented at EA following its $55 billion acquisition.
- More aggressive monetization and many other measures are also expected, as the deal is funded in part by $20 billion in debt.
- It is claimed that the investors of the Consortium are betting that AI-based cost cuts will significantly boost EA’s profits in the coming years.
There might be massive layoffs on the way at Electronic Arts, as the company was acquired for $55 billion on Sept. 29, 2025, by the sovereign wealth fund of Saudi Arabia, known as the Public Investment Fund (PIF), the American global private equity firm Silver Lake, and the American investment firm Affinity Partners, founded in 2021 by Jared Kushner, the son-in-law of current United States President Donald Trump.
When the rumours about EA’s acquisition received official confirmation, Jason Schreier, an American journalist and author who primarily covers the video game industry, expressed concern in a post on LinkedIn, declaring that since the deal is funded in part by $20 billion in debt (financing fully and solely committed by JPMorgan) that will be put on the books of the new privately owned EA, it will lead to a significant amount of cost-cutting in order to cover the debt.
Schreier expects mass layoffs, more aggressive monetization, and many other measures, as the interest on the debt alone could amount to hundreds of millions of dollars per year.
On top of that, as reported by the Financial Times, people involved in the transaction claim that the investors of the Consortium (which includes PIF, Silver Lake and Affinity Partners) are betting that AI-based cost cuts will significantly boost EA’s profits in the coming years.
Headquartered in Redwood City, California, Electronic Arts is an American video game company that was founded by former Apple employee Trip Hawkins in May 1982.
EA develops and publishes games from established franchises, including Battlefield, Command & Conquer, Dragon Age, Dead Space, Mass Effect, Medal of Honor, Need for Speed, Plants vs. Zombies, The Sims, Skate, and Star Wars, along with EA Sports titles such as College Football, FC, FIFA, Madden NFL, NHL, UFC, and more.
