{"id":1655916,"date":"2026-08-07T09:57:15","date_gmt":"2026-08-07T09:57:15","guid":{"rendered":"http:\/\/cA3A5JcrFh4pqvJMuLuASS"},"modified":"2026-08-07T09:57:15","modified_gmt":"2026-08-07T09:57:15","slug":"saudi-acquired-ea-is-reportedly-planning-to-make-massive-cuts-after-taking-18-billion-of-debt-and-we-all-know-what-that-means","status":"publish","type":"post","link":"https:\/\/arcader.org\/news\/saudi-acquired-ea-is-reportedly-planning-to-make-massive-cuts-after-taking-18-billion-of-debt-and-we-all-know-what-that-means\/","title":{"rendered":"Saudi-acquired EA is reportedly planning to make massive cuts after taking $18 billion of debt, and we all know what that means"},"content":{"rendered":"
\n

Electronic Arts has officially now passed into the hands of Saudi Arabia<\/a>\u2014specifically, the Saudi Arabia Public Investment Fund, as well as firms Silver Lake and Affinity Partners. It is with a grim lack of surprise that I now inform you that this will, reportedly, involve a lot of layoffs.<\/p>\n

The news comes courtesy of Bloomberg’s Jason Schreier, who posted to Bluesky<\/a>: “EA officially goes private tonight, meaning: EA will no longer trade on the NASDAQ for the first time in 36 years, all stockholders of EA (including many employees) will receive $210\/share, [and] EA will take on $18 billion (!) in debt, putting it on the hook to pay ~$1.8 billion\/year in interest.<\/p>\n

“EA’s annual Ebitda is around $1.5 billion, which should be enough to service the interest payments. But the publisher has told debt investors that it will cut $700 million in annual costs including $170 million in ‘organizational efficiencies,’ per Bloomberg. In other words: mass layoffs.”<\/p>\n

This is, technically, a called shot\u2014but it’s a called shot in the sense of saying that a giant boulder rolling down a hill is probably going to flatten the sand castle it’s headed towards. Maybe it hits a pebble and jolts out of the way at the last second\u2014maybe $700 million in annual costs will be cut through, I don’t know, pragmatic restructuring or executives reducing their salaries. Perhaps pigs shall fly. Anything’s possible.<\/p>\n

But given the state of the current industry, I’m inclined to agree with Schreier here. Large-scale acquisitions like this typically result in mass layoffs and studio closures, as was the case with Microsoft’s $68.7 billion purchase of Blizzard<\/a>, which resulted in a bloodbath of 1,900 laid-off employees across the company and Xbox.<\/a><\/p>\n

That ugly trend has continued unabated: Microsoft’s recent ‘reset’ saw 1,600 layoffs, with 1,600 more to come by 2027<\/a>, Ubisoft has continued to make deep cuts<\/a> as it struggles to stay alive, and yes, EA has already made significant layoffs<\/a> of its own ahead of the acquisition\u2014and that’s just the past couple months. <\/p>\n

There’s a huge flood of talent, both institutional and new, that’s now being dropped into a hiring pool already thousands strong\u2014adding what’s bound to be a rash of layoffs from EA to that pile is bound to be grim tidings.<\/p>\n

All of this comes in spite of the fact that the wider industry is as big and as profitable as it always has been, with global games revenue surpassing $200 billion in 2025<\/a>. Where’s all that money going? Clearly not to the people making the things, that’s for sure.<\/p>\n

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<\/a><\/p>\n

2026 games<\/strong><\/a>: All the upcoming games
Best PC games<\/strong><\/a>: Our all-time favorites
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Best co-op games<\/strong><\/a>: Better together<\/p>\n<\/div>\n<\/article>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Electronic Arts has officially now passed into the hands of Saudi Arabia\u2014specifically, the Saudi Arabia Public Investment Fund, as well as firms Silver Lake and Affinity Partners. It is with a grim lack of surprise that I now inform you that this will, reportedly, involve a lot of layoffs. The news comes courtesy of Bloomberg’s Jason Schreier, who posted to Bluesky: “EA officially goes private tonight, meaning: EA will no longer trade on the NASDAQ for the first time in 36 years, all stockholders of EA (including many employees) will receive $210\/share, [and] EA will take on $18 billion (!) in debt, putting it on the hook to pay ~$1.8 billion\/year in interest. “EA’s annual Ebitda is around $1.5 billion, which should be enough to…<\/p>\n

Read More…<\/a><\/p>\n","protected":false},"author":1,"featured_media":1655917,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[336],"tags":[5491],"class_list":["post-1655916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pc-gamer","tag-gaming-industry"],"yoast_head":"\nSaudi-acquired EA is reportedly planning to make massive cuts after taking $18 billion of debt, and we all know what that means | Arcader News<\/title>\n<meta name=\"description\" content=\"Electronic Arts has officially now passed into the hands of Saudi Arabia\u2014specifically, the Saudi Arabia Public Investment Fund, as well as firms Silver\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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