(Reuters) -Videogame maker Electronic Arts said on Wednesday it would reduce 5% of its workforce, as the industry struggles to grow amid high interest rates.
The company expects to incur about $125 million to $165 million in charges as part of the restructuring plan that also includes a reduction in real estate.
“While not every team will be impacted, this is the hardest part of these changes, and we have deeply considered every option to try and limit impacts to our teams,” CEO Andrew Wilson said in a letter to employees.
The actions associated with the plan is expected to complete substantially by Dec. 31.
As of March 31, the company had about 13,400 people, with 65% located internationally, according to a regulatory filing.
Sony, Microsoft and Tencent-owned Riot Games have also laid off thousands of employees in recent months due to a slow recovery in the gaming market amid high borrowing rates.
EA had forecast fourth-quarter bookings below estimates in January.
(Reporting by Sourasis Bose in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)
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