Electronic Arts has officially transitioned to a private company following the completion of a $55 billion acquisition deal. The transaction, which includes Saudi Arabia’s Private Investment Fund, Jared Kushner’s Affinity Partners, and Silver Lake, leaves the publisher facing $20 billion in debt.
Financial Obligations and Cost Reductions
To service the $18 billion in debt funded at the close of the deal, EA is now responsible for approximately $1.8 billion in annual interest payments. While the company’s current EBITDA sits at roughly $1.5 billion, the publisher has committed to debt investors that it will reduce annual operating costs by $700 million.
This cost-reduction strategy includes $170 million allocated specifically for "organizational efficiencies," a term that industry analysts, including Bloomberg's Jason Schreier, have characterized as a precursor to mass layoffs.
Impact on Staff and Operations
When the acquisition plans were first revealed last year, EA stated there would be "no immediate changes" to jobs or teams. However, the company has not provided a timeline or definition for when that "immediate" period concludes.
The company is also looking to manage its debt through technology. Reports indicate that new investors are interested in utilizing AI to reduce operating costs. EA CEO Andrew Wilson noted in April 2026 that 85% of the company's quality assurance work already involves AI tools, though he maintained that the company continues to hire human staff to analyze AI findings.
Management Outlook
Despite the looming debt and potential workforce reductions, CEO Andrew Wilson stated that the company is entering this phase from a "position of strength." The company has publicly committed to using its new partnerships to "invest boldly" and "accelerate innovation" within its game portfolio.
What remains unknown is the specific scope of the planned "organizational efficiencies" and which studios or departments will be prioritized as the company attempts to balance its new debt load.