EA’s Saudi takeover wouldn’t have happened if the company’s culture “had any semblance of a moral backbone”, say staff fearing

The ink is barely dry on the controversial takeover of Electronic Arts (EA) by a consortium backed by the Saudi Arabian government and Jared Kushner, but the fallout is already rippling through the company. While EA attempts to project an image of business as usual, a new report paints a starkly different picture: one of fear, uncertainty, and a growing sense that the soul of the company is at risk. Staff are grappling with the implications of this seismic shift in ownership, bracing for potential layoffs, creative compromises, and a fundamental clash between EA’s existing values and those of its new owners.

The Culture Clash

According to a report from Game Developer, numerous anonymous EA employees have expressed deep unease about the takeover. While EA has publicly stated that it won’t change creatively, staff are skeptical. One employee bluntly stated, “If EA had a culture that had any semblance of a moral backbone, it wouldn’t get into bed with a prince who’s disgusted by many of its current employees’ sexualities and ethnicities.” This sentiment highlights the core issue: a fundamental incompatibility between EA’s existing values and those of the Saudi state.

The fear isn’t just about overt censorship. One staffer suggested that creative meddling might take a more subtle form. “The [crown] prince is not going to get on a town hall and say ‘we are no longer doing these things’ but instead projects just won’t get signed because they don’t align explicitly with what the Saudi government wants or implicitly because [EA will think] ‘oh, we’re going to try and cater these things [to our owners] because if we pitch something else the government may not like or approve of it,” they explained. This passive pressure could stifle innovation and force EA to compromise its artistic vision.

Layoffs and Job Security

The specter of layoffs looms large over EA. The report cited an employee who said that layoffs are now a constant threat, with “some amount of cynicism in that we expect they won’t be enacted as mass layoffs anymore but rather as waves of small layoffs in order to bypass WARN notices.” This strategy allows EA to shed staff incrementally while avoiding the legal requirements of larger-scale workforce reductions.

Given the typical structure of leveraged buyouts, where an acquired company is saddled with debt that must be repaid from its earnings, one EA staffer expressed concern that “it’s hard to see how teams or games that underperform wouldn’t be dissolved or sold off.” This suggests that even successful franchises could be vulnerable if they don’t meet the new owners’ financial expectations.

EA’s Response and Employee Morale

The report also highlighted EA’s attempts to quell employee anxieties. According to staff, EA’s responses to concerns about the buyout have been “mostly just vague reassurances.” Some alluded to unnamed EA execs’ responses and comments around town hall meetings during which the deal was discussed as having left them feeling those above them are out of touch. An alleged example cited is a hot mic incident which reportedly saw one exec mutter “little babies” at the end of a call which had seen concerned workers ask about how the deal might impact EA’s culture and their job security.

In an attempt to garner support for the deal, EA has reportedly emphasized the potential payout that staff who own vested shares in the company could receive due to the takeover increasing EA’s stock price. However, this hasn’t eased the underlying concerns about the future of the company.

One employee summed up the prevailing sentiment: “At this point, all you can do is get that bag today, because you’ll likely be unemployed tomorrow.” This bleak outlook underscores the deep-seated anxieties within EA as it navigates this unprecedented period of change. I’ve asked EA for comment.

For more reaction to the EA Saudi deal from folks making games under the publishers, take a look at Edwin’s recent interview with Star Wars: Zero Company devs Bit Reactor, whose publishing deal with EA was signed long before the takeover went through.