Apex Legends: Respawn Hit by EA Layoffs

EA's Plan Leads to Layoffs at Apex Legends Developer Respawn

Respawn Entertainment, the development studio behind the immensely popular game Apex Legends, has found itself caught in the crossfire of Electronic Arts' (EA) recent restructuring plan, leading to at least 23 layoffs within the Apex Legends team. The move is part of EA's broader plan to streamline their operations with the goal of cutting costs and refocusing resources, and comes immediately after EA announced their plan to boost Apex Legends' range by expanding beyond the battle royale genre.

Respawn Entertainment's layoffs have reportedly affected approximately 23 staff members, thereby impacting the Apex Legends team. EA announced these layoffs in late February as part of its plan to trim its workforce by 5%, which translates to around 670 employees across its various studios. The restructuring effort is expected to cost between $125 million and $165 million and is slated to conclude by the end of 2024.

Just days ago, Andrew Wilson, the CEO of EA, announced his plans to expand Apex Legends beyond its current format, target new markets and audiences, and boost the game's income across multiple formats. Wilson emphasized that the expansion aligns with EA's broader strategy to prioritize the growth of its existing intellectual properties (IPs). However, the ambitious growth plans come with a cost, as evidenced by the recent layoffs.

Apex Legends, launched in 2019, has emerged as one of EA's flagship IPs, boasting a dedicated player base and quickly becoming a huge commercial success. Despite its popularity, EA aims to make the game more accessible to newcomers, with plans to introduce beginner-friendly features starting with Season 20: Breakout.

The expansion roadmap for Apex Legends, outlined by CEO Andrew Wilson during a presentation at the Morgan Stanley Technology, Media & Telecom Conference, consists of multiple phases. While Phase 1 focuses on enhancing accessibility, Phase 2 will introduce new game modes beyond the traditional battle royale format. Phase 3 aims to broaden the game's appeal to a wider audience, showing EA's ambitious growth strategy for the franchise.

The layoffs at Respawn Entertainment have sent shockwaves through the gaming community, with several employees expressing their disappointment and uncertainty about the future. Apex Legends' social media lead, Alex Ackerman, reflected on her time at Respawn as "the honor of my career" after the company "made her redundant."

Despite the layoffs, EA remains optimistic about Apex Legends' future prospects, citing positive performance indicators such as the successful collaboration with Final Fantasy VII. Meanwhile, fans who were unhappy about the FFVII Rebirth event speculated that this was in fact a failure that might have led to some of the layoffs on Respawn’s side. While Apex Legends may have missed EA’s objective milestones in the past, EA executives believe the game is growing, and they want to reaffirm their confidence in the franchise's long-term viability by boosting Apex Legends with new game modes beyond the battle royale soon.

In addition to the layoffs, Respawn Entertainment faced other setbacks, including the cancellation of an unannounced first-person Star Wars game that would feature the Mandalorian. Instead, the studio will focus on developing the third installment of the Star Wars Jedi series. Meanwhile, Respawn's involvement in Bit Reactor's unannounced Star Wars strategy game is still ongoing.

Looking ahead, EA's commitment to expanding Apex Legends beyond its traditional battle royale experience underscores the company's determination to capitalize on the game's untapped potential. Despite the challenges posed by the recent layoffs and restructuring efforts, EA remains steadfast in its support for Respawn Entertainment and the future growth of Apex Legends.

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