Electronic Arts faces $18B debt after $55B sale, prepares for layoffs

Electronic Arts, acquired by a consortium led by Saudi Arabia's Public Investment Fund (PIF) for $55 billion, now faces the challenge of servicing nearly $18 billion in debt. According to Bloomberg, citing correspondent Jason Schreier, annual interest payments could reach $1.5 billion, forcing management to seek ways to optimize operations.

Among the measures under consideration are staff reductions, closure of underperforming projects, and reallocation of resources toward key franchises. Priority areas include EA Sports FC, Battlefield, Madden, The Sims, and Apex Legends. The company plans to focus efforts on these series to stabilize its financial position.

No official announcements about layoffs have been made yet, but Electronic Arts has a history of restructuring: in the past, the company has repeatedly cut staff and closed studios. CEO Andrew Wilson is expected to remain in his role.

Experts note that large leveraged deals are almost always accompanied by cost-cutting programs. In the case of Electronic Arts, where the debt amount has reached record levels for the gaming industry, the likelihood of large-scale layoffs is considered high. It is not yet known how many employees could lose their jobs and which studios might be closed.