Understanding Gaming Industry Trends: EA's Layoff Impact 

Electronic Arts (EA) is cutting 5% of its workforce, affecting around 670 employees.

EA is moving away from developing future licensed intellectual properties (IP) to focus on owned IP, sports, and online communities.

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This move follows last year's layoff of around 700 employees, indicating ongoing restructuring efforts.

EA recently shut down EA Sports MLB Tap Sports and F1 Mobile Racing, leading to additional layoffs.

The company expects to spend $125-165 million on layoffs and other cost-cutting measures.

Despite layoffs, EA reported $7.6 billion in earnings and $5.8 billion in gross profit over the past year.

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EA's layoffs reflect a wider trend in the gaming industry, with Sony Interactive Entertainment also laying off 900 employees.