Codemasters Announces Layoffs Amid Loss of WRC License and EA Downsizing

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Summary

  • After announcing the loss of the WRC license, Codemasters confirmed it’s planning its second round of layoffs in less than two yeras.
  • The scope fo the workforce cuts has yet to be determined.
  • Approximately 400 roles across EA are expected to be eliminated between late spring and early summer 2025.

In simple terms, it seems that Codemasters, a company, has recently declared they will be letting go of some workers soon. This is their second round of redundancies within nearly two years. Additionally, this makes Codemasters the second EA subsidiary to announce layoffs in the past few days.

By April 2025, Codemasters made it known that they wouldn’t be renewing their license for the World Rally Championship (WRC). Although a scaled-down version of this license remains valid until 2027, production on their latest rally game, EA Sports WRC, launched in 2023, has been put to a halt.

The lack of a WRC license going forward may result in some job losses at Codemasters in the coming time, as they’ve indicated to VGC. Although the studio is keeping specifics under wraps, a representative stated that they have been considering trimming certain positions recently. Not every planned position reduction will automatically lead to layoffs, as Codemasters has hinted it is also investigating potential roles for affected employees within the broader Electronic Arts corporation.

Codemasters Layoffs Are Part of EA’s Wider Downsizing

Apart from Codemasters, Electronic Arts (EA) has several other subsidiaries that have recently reduced their workforce or are considering similar actions. For instance, Respawn Entertainment has terminated two projects and let go of numerous employees this past spring. A Bloomberg report from April 29 suggests that EA may be planning to eliminate an additional 200 to 300 positions beyond those affected at Respawn in the near future.

The recent difficulties in the company can be linked to EA’s financial report from January 2025, where they acknowledged that several high-budget projects did not perform as well as expected. Games like “Dragon Age: The Veilguard” and their latest soccer simulator, “FC 25”, were among the underperformers. Following this earnings report in late January, EA’s shares dropped approximately 20%. However, they have since bounced back, even showing a four-point increase after the announcement of company-wide layoffs.

The extent of the planned job cuts at Codemasters remains undecided. Moreover, the loss of the World Rally Championship license has resulted in the halt of all rally-themed video game projects aside from EA Sports WRC. These events symbolize a significant turning point, as Codemasters’ rally games have provided uninterrupted entertainment to WRC enthusiasts since the early 2000s. A studio representative described these changes as “every great journey eventually finds its finish line.” This situation may lead Codemasters to devote more attention to Formula One, their sole remaining sports license.

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2025-05-04 01:08