Journalist Reports Electronic Arts Seeks $700 Million in Cost Cuts After Acquisition

Electronic Arts plans to cut spending by roughly $700 million, including $170 million through organizational efficiency, following a $55 billion buyout, according to Jason Schreier.

Electronic Arts could implement massive spending cuts after finalizing its $55 billion acquisition. Bloomberg reporter Jason Schreier states that EA plans to save around $700 million.

The buyout stands as one of the largest leveraged buyouts in history. Investors put up roughly $36 billion, while a loan covering the remaining $20 billion now hangs over the company.

Part of the savings, about $170 million, is slated to come from organizational efficiency. In practice, this could mean widespread layoffs, studio closures, and the cancellation of certain projects.

At the same time, EA still has to pay off a massive debt, which raises concerns among players. Many believe the company might ramp up monetization in its games to boost revenue.

Electronic Arts has not yet officially confirmed plans to cut spending, but the need to pay off the $20 billion debt could lead to major changes within the company.