Electronic Arts faces layoffs amid $55 billion Saudi-backed acquisition

Electronic Arts (EA) is close to completing a $55 billion buyout by a consortium that includes the Saudi Public Investment Fund and a private‑equity firm, with a target closing date of July 22 and the transaction expected to close this summer. To meet the financing terms of the deal, EA has undertaken aggressive cost‑cutting, including at least three rounds of layoffs this year that have affected employees at U.S. studios and its Hyderabad, India office; the exact number of jobs eliminated has not been disclosed.

The proposed sale has sparked a backlash from the gaming community, especially players of The Sims franchise, who fear the new owners may alter the game’s long‑standing inclusive culture. Several prominent streamers have voiced intentions to stop playing the title, and U.S. Representative Maxwell Frost joined protests opposing the Saudi‑linked purchase.