Electronic Arts employees are fearing the worst after the major publisher closed a deal to end its 37-year run as a public company on August 4, thus shouldering huge new debts.
Shared by Insider Gaming’s Mike Straw on Bluesky, staff layoffs could be imminent after EA was mostly acquired by the Saudi Arabia Private Investment Fund (PIF), which controls the sovereign wealth of the Middle Eastern nation. That fund now owns 93% of the company and will be a major driver of EA's future decisions, both financially and entertainment-wise.
Straw spoke to multiple EA employees across various studios and heard from some that they fear fresh layoffs will come within the next 12 months. Communication to staff members from EA regarding the security of their positions has been mixed, according to some employees.
EA's New Heavy Burden: $20 Billion in New Debts
As part of the $55 billion leveraged buyout—the largest in history—EA now has over $20 billion dollars in new debt obligations that place heavy financial pressure on the publisher. Unlike a traditional buyout or merger, leveraged buyouts see the acquirer use large amounts of new debt to secure assets and complete the transaction, which is then...
