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EA Hits F1 Developer Codemaster with Layoffs Amid Racing Game Struggles

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Electronic Arts (EA) announced a round of layoffs at Codemasters, the developers behind racing games such as F1, EA Sports WRC, and the Grid series. The layoffs follow the lack of success in EA's racing franchises. Read on to know more.

EA Announces a Round of Layoffs at Codemaster

Layoffs Due to "Organizational Adjustments"

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In a statement made to IGN, EA emphasized the need for organizational adjustments to align teams and resources with evolving business needs. EA officially announced the layoffs, stating, "Our business is constantly changing as we strive to deliver amazing games and services that keep our players engaged, connected, and inspired."

Despite these changes, EA reiterated its commitment to support those affected by the layoffs, providing appropriate assistance throughout the transition. The exact number of employees affected by the layoffs was not disclosed.

EA’s Turbulent History with Racing Games

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In 2021, EA acquired Codemasters for $1.2 billion as the company aimed to establish itself as the "home of racing games." However, soon after the acquisition, it was reported that Codemasters CEO Frank Sagnier and CFO Rashid Varachia departed from the company.

Subsequently, Codemasters, along with Slightly Mad Studios (developer of Project Cars), became a part of EA Sports. In May 2022, EA merged the development teams at Codemasters Cheshire and Guildford-based Criterion Games.

This merger aimed to create a larger development studio working on Need for Speed Unbound. Unfortunately, the game faced challenges in finding its audience and commercial success. Meanwhile, Codemasters Birmingham continued work on the F1 franchise.

This year, Codemasters released two racing games, F1 23 and EA Sports WRC. Both games were also reported to have encountered difficulties achieving commercial success as well.

Sources:
F1 Developer Codemasters Suffers Round of Layoffs
Electronic Arts completes the acquisition of Codemasters for $1.2 billion

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