Following EA recently announcing that its acquisition by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners is now complete, a new report indicates that major cost-cutting measures will begin soon. According to Bloomberg’s Jason Schreier, the company has ended up with $18 billion in debt, with around $1.8 billion being paid annually in interest alone.
Along with this, he also noted that the company wants to cut its annual costs down by $700 million. This will involve cuts of $170 million in what has been described as “organizational efficiencies.” While the company hasn’t outright said it, the phrasing indicates that EA is bracing itself for a large round of layoffs to be able to hit its targets. This comes despite the company’s EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) sitting at around $1.5 billion, allowing it to comfortably pay off the interest.
As for the future of the company, it is currently unknown where EA’s layoffs will begin. It is quite likely that the company is now looking at ways to maximize its revenues through popular games like its yearly sports releases and live-service titles like Battlefield 6 and Apex Legends. Where that leaves development teams like BioWare, which primarily focus on single-player experiences, remains to be seen.
In announcing that the deal had been completed, Silver Lake CEO Egon Durban said in a statement that he is looking forward to investing in ways to improve the game development process by making use of AI, which could also play a major role in upcoming layoffs.
“As long-term investors in technology, we admire how EA’s innovation fuels imagination and human connection,” he said. “We’re proud to join with PIF and Affinity Partners to invest heavily in EA’s growth, including what AI can do to enhance game development and player experience, and excited to partner with Andrew and the EA team as they raise the bar for fans everywhere.”
For his part, EA CEO Andrew Wilson said in a statement that the company is looking forward to working with its new owners and “invest boldly” in ways to grow the company. “We’re entering this next chapter from a position of strength with partners who share our vision and ambition,” he said. “Together, we’ll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day.”
The deal to acquire EA is valued at around $55 billion, with EA taking on quite a bit of debt to make payments. Shareholders in the company are being paid $210 per share now that the deal has wrapped up, which also includes many people currently still working at the company.
While the acquisition was announced back in September 2025, in the following month, a report popped up indicating that many developers working at BioWare have been anxious about the deal potentially leading to layoffs across the studio. “I’ve been doing it since last year, but I’m making sure I have a portfolio ready and feelers out for other jobs,” said one developer. “Kind of feels like a matter of time.”
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
— Jason Schreier (@jasonschreier.bsky.social) 2026-08-05T00:34:00.106Z
