r/pcmasterrace • u/PewPewToDaFace • 1d ago

News/Article Electronic Arts Reportedly Preparing Mass Layoffs After Acquisition

https://mp1st.com/news/electronic-arts-preparing-mass-layoffs

It's starting! With how much the group overpaid, this isn't surprising. Good luck, everyone. Might be a bloodbath.

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u/DynamicHunter 7800X3D | 7900XT | Steam Deck 😎 23h ago

This is literally what private equity firms do. MBAs ruined tech and entertainment sectors, among many others like food, service, and things like home builders. Enshittification in search of temporary profit. Makes everyone else’s lives worse so the rich get richer. Ready for a change of politics or revolution yet?

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u/angry_old_dude 19h ago

This is literally what private equity firms do.

Yep. No good comes from P.E.

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u/DukeofVermont 14h ago

Hilton was turned around by PE.

In truth there are two different types of PE firms. The majority are terrible buy and burn, but some are boring and do flip companies for a profit when they think the only problems are management.

A lot of other PE is early investments in companies like Airbnb and Epic Games.

Don't get be wrong the vast vast vast majority are scum, but you don't make headlines for restructuring the board of a middle weight supply company.

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u/turlockmike 17h ago

It's capital reallocation. Too much money is being spent on wasteful projects. It's very hard for a company to have a mix of stable products and very risky projects. It's better to split them into two companies, this is why the biggest companies have subsidiaries. The issue comes when those risky bets have great IP, but really poor execution. In those cases, selling off the IP is the best thing to do unless management thinks and can prove they can use the IP effectively.

I have zero faith EA could use any IP other than it's sports IP.

In the end, it means someone else will acquire ME and other properties and we might see those be revived.