UK-based game development studio Codemasters has been impacted by layoffs, as parent company EA initiates a company-wide restructure. The news was confirmed by IGN, although EA reportedly did not reveal how many staff are impacted by job losses.
“Our business is constantly changing as we strive to deliver amazing games and services that keep our players engaged, connected, and inspired,” an EA spokesperson said. “At times, this requires the company to make small-scale organisational changes that align our teams and resources to meet evolving business needs and priorities. We continue to work closely with those affected by these changes, providing appropriate support throughout this process.”
Notably, EA only bought Codemasters in 2021 – for the price of US $1.2 billion. Following the purchase, EA promised to maintain the spirit and independency of the studio, with minimal interference. Since then, much has changed in the global games industry, as companies worldwide are now dealing with the impacts of economic stress, failing investments, and an overall reduction in sales (likely inspired by various cost of living crises).
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In the case of Codemasters, the restructure and layoffs may have been inspired by a reported lack of mainstream sales success for two of the studio’s biggest releases in 2023: F1 23 and EA Sports WRC. That said, beyond a need to make “organisational changes” there has been no other firm reason given for the layoffs at the studio.
Elsewhere, US-based publisher tinyBuild has also announced job cuts, following a difficult year for the studio. As reported by GameDeveloper, the company has performed “below expectations” and is therefore initiating action to “re-align investments with expected revenues.”
“Since the publication of the Company’s interim results in September 2023, the market has deteriorated further and negotiations of certain large contracts have extended into the final month of the year,” the company said in a recent trading update.
“These remain under negotiation and may not be signed by year end, or at all. The continued underperformance of Versus Evil which delayed into 2024 three out of four games originally planned for release in H2 2023, including the widely anticipated Broken Roads, also weighed on group performance.”
The company will initiate “essential” job cuts to ensure it’s able to stay open as the market tightens.
Both EA and tinyBuild now join a long list of studios initiating significant layoffs – a list which currently includes Ubisoft, Media Molecule, Blizzard, Team17, EA, CD Projekt Red, Riot Games, Amazon, Ascendant Studios, Private Division, 2K, Volition, Firaxis, Telltale Games, Crystal Dynamics, Epic Games, Digital Extremes, Humble Games, ByteDance, Phoenix Labs, and more.
Our thoughts are with those impacted by these layoffs.
