EA's Internal AI Chatbot Stumbles as Publisher Cuts Hundreds of Jobs Before $55 Billion Takeover
Published on 06/24/2026 at 06:25 | Redaktion boerse-global.de
A company-wide chatbot named ReefGPT has been generating faulty program code at Electronic Arts, according to employees who question the reliability of the tools the leadership is championing. The mishap comes as the gaming giant cuts jobs for the third time in 2026 — this round targeting remote workers in the United States and staff at its Hyderabad, India, office.
The layoffs hit administrative departments such as recruitment, customer support, IT, and trust and safety. Management says the cuts are meant to align the workforce with player needs and reflect structural role changes, which in some cases involve outsourcing. Major development studios like DICE and BioWare are not affected this time. However, in March 2026, teams working on "Battlefield 6" and the project "Skate" already saw reductions. Longtime employees with more than a decade of service are also being let go.
The job losses are happening alongside the planned acquisition of EA by a consortium including Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners. The deal is valued at roughly $55 billion. European Union competition authorities are expected to rule between July 22 and 23, 2026. Industry observers view the cuts as a push for efficiency before the sale closes.
Despite the headcount reductions, EA's business appears solid. For the fiscal year 2026, the company reported net revenue of about $7.5 billion. "Battlefield 6" sold seven million units in its first three days and is the best-selling premium game of 2025 in the United States.
CEO Andrew Wilson has positioned artificial intelligence as central to EA's future, pointing to more than 100 active AI projects. Laura Miele, President of Enterprise Development, promises a creativity boost, saying AI speeds up prototyping and removes workflow obstacles. Employees are skeptical. Many fear for their jobs and criticize the new tools' dependability. The ReefGPT incident — where it reportedly produced erroneous code — has done little to build confidence.
The current wave of layoffs is part of a longer pattern of cost-cutting at EA. In 2023, roughly 800 positions were eliminated, including over 200 external testers for "Apex Legends." Another 670 people were let go in 2024, among them staff at the Codemasters studio. Significant reductions hit BioWare and Respawn Entertainment in 2025.
Separately, legal turbulence is brewing. Richard Garriott, creator of the "Ultima" series, has announced he will reclaim the copyright under the US Copyright Act. EA acquired the rights in 1992 but closed the studio that handled the franchise in 2004.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
