Mass layoffs may be in EA's near future after leveraged buyout raises company debt by $18 billion

Fans of the company's games fear deep cuts as EA tries to slash $700M in costs Private investors, including Saudi Arabia's Public Investment Fund, private equity fund Silver Lake, and Affinity Partners have completed a leveraged buyout of Electronic Arts, loading the now-private company with debt. As part of the deal, EA is now on the hook for $18 billion in debt, resulting in about $1.8 billion of interest to be paid annually. In order to make interest payments and ensure profit, EA will have to make drastic cuts. According to Bloomberg reporter Jason Schreier, cost-cutting will be EA's primary focus after the buyout. EA has told investors that it intends to reduce annual costs by $700 million. A large portion of this will be "organizational efficiencies," which amount to $170 million in cost savings that likely translate to mass layoffs. Electronic Arts is estimated to have already laid off an estimated 970 people over the past two years. EA has been pushing its employees to use artificial intelligence, claiming it would boost productivity. The company told investors in 2025 that it expects $100 million in savings by adopting AI tools to help write code for video games and lower