Mass Layoffs Feared at EA After $55B Sale: Saudi-Led Buyout Gives Trump's Son-in-Law a Stake

Electronic Arts' (EA) new chapter as a privately owned company is beginning with optimism from management, but also growing concern among employees after reports that the video game giant plans hundreds of millions of dollars in cost cuts following its $55 billion acquisition by a consortium led by Saudi Arabia's Public Investment Fund (PIF).

The deal, which officially closed this week, takes the publisher of EA Sports FC, Madden NFL, The Sims, and Battlefield off the Nasdaq and into private ownership under a consortium comprising PIF, Silver Lake, and Affinity Partners, the investment firm founded by Jared Kushner, the son-in-law of US President Donald Trump.

While EA executives have presented the acquisition as an opportunity to invest in AI, game development, and long-term growth, financial disclosures made to debt investors suggest a different reality may be unfolding behind the scenes.

EA's Layoff Concerns Part of $700M Cost-Cutting Measure

EA has reportedly told investors financing the acquisition that it expects to trim $700 million in annual costs, including $170 million through organisational efficiencies.

Although the company has not publicly announced layoffs, the phrase 'organisational efficiencies' is widely used in corporate restructuring to describe workforce reductions. According to Bloomberg, the savings are intended to help service the significant debt used to finance the buyout.

EA reportedly generates roughly $1.5 billion in annual EBITDA, giving it sufficient earnings to cover interest payments. However, reducing operating expenses would improve cash flow and accelerate debt repayment following one of the largest leveraged buyouts ever completed in the gaming industry.

The company has not disclosed how many jobs could ultimately be affected. The prospect of further workforce reductions has attracted attention because EA has already undergone multiple rounds of layoffs in recent years. In 2023, the publisher eliminated around 6% of its workforce, and in 2024, it downsized by around 670 employees, or about 5% of staff, while cancelling several game projects. Those earlier cuts were framed as efforts to advance strategic priorities rather than responses to financial distress.

Kushner's Firm Joins Saudi-Led Consortium

One of the most politically notable aspects of the transaction is the participation of Affinity Partners, the private equity firm launched by Jared Kushner after leaving the White House.

Kushner, who served as a senior adviser during Trump's first administration, founded Affinity Partners in 2021. The firm received a $2 billion investment commitment from Saudi Arabia's Public Investment Fund, which drew scrutiny because of Kushner's close diplomatic relationship with Saudi officials while serving in government.

In the EA acquisition, Affinity Partners joins PIF and technology investment firm Silver Lake as part of the ownership group. Kushner had reportedly said the consortium plans to help EA reach new audiences while expanding the ways players connect through games.

Neither Kushner nor Affinity Partners has disclosed the size of their ownership stake in EA, but the firm is listed as one of the three principal members of the acquiring consortium.

EA Promises More Investment, Not Less

Despite investor concerns about potential layoffs, EA's leadership has emphasised growth rather than retrenchment.

Chief Executive Andrew Wilson had said that EA is entering its next phase 'from a position of strength' and intends to invest aggressively in innovation, creativity, and the next generation of gaming experiences.

Silver Lake also highlighted AI as a major focus, saying it expects the technology to enhance both game development and player experiences across EA's portfolio. Meanwhile, PIF described entertainment and gaming as strategic priorities within Saudi Arabia's broader economic diversification plans under Vision 2030.

Whether those long-term ambitions can coexist with the aggressive cost-cutting outlined to investors remains a question. For employees, the immediate concern is that the promised $700 million in annual savings could translate into another wave of layoffs even as the new owners pledge to invest heavily in EA's future.