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Video game union workers rally against $55B private acquisition of EA

ryandrake

> "EA is not a struggling company," the statement reads. "With annual revenues reaching $7.5 billion and $1 billion in profit each year, EA is one of the largest video game developers and publishers in the world."

Seems to be a common theme in 2025: Actually-healthy companies cosplaying as struggling companies, as an excuse to justify layoffs and other activities that transfer wealth and power from employees to management and shareholders. Like, does anyone think any of these BigTech (and MediumTech) companies who are all doing layoffs are really "struggling" and "vulnerable"? It's always just an unbelievable excuse.

bko

I don't think you need to "justify layoffs". If a company feels an employee is not being productive, they should be allowed to let them go. Same way if an employee feels he is getting underpaid or wants to work somewhere else, they should be allowed to leave.

I've actually always liked working for companies in which the objective was straight forward. None of this "we're a family" stuff. You should be kind, and all the places I was at were kind. But layoffs are a reality and reducing headcount at times is part of that. You need a way to get rid of dead wood, otherwise you would be too afraid to grow and hire when you need to.

screye

I have changed my opinion on professional warmth.

In demanding industries, people spend 2/3rds of their waking hours around their coworkers. That's practically their whole life. It's cruel to encourage coldness in such an environment. You aren't family. But, you can be comrades. Your friendships can be forged through shared struggles, shared spaces and convenience.

It's a unique trait of tech companies to encourage cold but polite relations with your coworkers. Other industries have layoffs, politics and capitalistic competition. That doesn't stop coworkers from becoming friends.

The new generation is more isolated than ever before. The workplace is one of the few remaining mandatory social spaces. We should encourage the organic warmth that builds up between coworkers. It's cliche. But we're social animals.

jazzyjackson

> It's a unique trait of tech companies to encourage cold but polite relations with your coworkers.

I don't know how you can assert this, among any other "stuck in a cubicle" office environment. Opportunities to be social are brief anyway. I'm on the side of 'give people time off enough to develop relationships outside of work'. 4 day work weeks would go a long way to helping people get the socializing we need.

ToucanLoucan

Agreed wholeheartedly. I'm not certain it's the company encouraging it, though. IMHO it's far more the economic realities we find ourselves in, where holding onto the same job for an extended period of time is basically, according to all casual career advice, fucking yourself over in terms of compensation.

My generation has been encouraged by this reality since we entered the workforce to change jobs every few years, because companies are so stingy with raises. If you're planning to do that, you naturally keep distance with your coworkers; they're probably leaving before you are, and even if not, you are planning to.

Companies see no value in their existing workforce and it's honestly quite self-defeating and stupid. "Losing" any worker be it to their choice, or layoffs, or whatever it might be is a genuine LOSS to your team. It's however many months or years of experience not just with code, but with your code-base, your business, and your products going out the door. The fact that so many companies lose so many good people because they simply refuse to let an employee have a bit more money is honestly mind-bending; and once they're gone, they'll happily list their job online, often with a salary range even higher than the employee they just fired wanted.

Absolute corporate idiocy.

AlexandrB

There's a difference between professional warmth and "we're a family". The latter usually comes top-down, from management and is fundamentally disingenuous. It's often a self-serving way of trying to get you to treat the company as your family, while company leadership still won't hesitate to lay you off in a mass zoom meeting. It's fine to be friends with co-workers or managers, but don't let companies obscure the fundamental nature of the relationship.

qwery

The term 'layoffs' in this context is simply not what you're describing. These layoffs occur at such scale that it's unreasonable to assume any individual employee being "let go" has even been evaluated as an individual.

And, yes, of course layoffs are something that need to be justified, just as with firing an individual employee, as you know -- the "employee is not being productive" is a justification.

gruez

>These layoffs occur at such scale that it's unreasonable to assume any individual employee being "let go" has even been evaluated as an individual.

Isn't that most layoffs? Think of the layoffs post GFC. Did the subprime mortgage crisis suddenly make everyone incompetent, or are companies simply trying to trim budgets and need to hit some number? If it's actually due to poor performance, it would be through a PIP or similar.

baggy_trough

If I no longer want to pay for your services, I should be able to stop for any reason, or no reason at all.

dijit

I'm in the same camp as you.

However the best work I ever did was done when I didn't have a pressure of being fired for offending the wrong person, and that I had the psychological safety to think longer term- since a short term "time-waste" often converted to better long term outcomes for everybody.

Aurornis

> However the best work I ever did was done when I didn't have a pressure of being fired for offending the wrong person, and that I had the psychological safety to think longer term- since a short term "time-waste" often converted to better long term outcomes for everybody.

I felt the same way until I worked at a company where almost nobody ever got fired or laid off. Anyone who was hired was basically guaranteed their job until the end of time because the leadership didn't like letting anyone go.

It only took a couple years until every time you needed to do something you'd run into some employee somewhere who wasn't doing their job. Even many people who seemed capable and appropriately skilled started slacking off when they realized there were never any consequences at all.

It was like a broken windows theory for the workplace. As people looked around and saw that others were doing almost no work, it started to spread. The people who liked actually shipping things started leaving, turning it into a snowball effect.

So there's a balance. Always working under threat of layoff and seeing good coworkers let go when you're already overburdened isn't good. Working in a company where there is no pressure at all to perform isn't good either.

nonethewiser

Guess it's their loss then. If companies are more productive by being more relaxed then we should see more of those companies survive and thrive.

bpt3

In my experience, companies that are focused on being a well-run company rather than a politically/personality/emotionally driven shitshow also are the ones that have long-term perspective and avoid making kneejerk reactions to almost everything.

gjsman-1000

Been there - done that. Worked at a company with no employee pressure, and it was absolutely infuriating that I could work my tail end off, while another employee was provably committing borderline wage fraud, but it always got written off as "personal issues" rather than take the risk of intervening... ever.

To the point I even had a boss say that part of this happens because nobody is there to spank adults when they need it (seriously), rather than intervene too strongly and have to find a replacement or hurt feelings or something. Or another contract worker, I got an apology from said boss... but he insisted she's better now than she used to be, the latest incident is mild compared to incidents before I arrived. As though that fixes it.

Much happier now at a company which cuts dead weight; and accepts we can't afford it.

dfxm12

Layoffs are different from firing individual people. Layoffs do have some legal requirements, including what's outlined in the WARN Act and/or whatever local equivalent. Layoffs also have to be justified to Wall Street or else the stock price will be affected. GP is clearly talking about the latter.

jayd16

> [...] layoffs". If a company feels an employee is not being productive [...]

Layoffs are not about individual performance

Spoom

To be fair, a handful of large companies have explicitly said[1][2] that their layoffs were largely about individual performance. All my experience as a manager in a large tech company says that that's almost certainly not the whole story, and unfair to many of the folks getting let go, but official word from the companies say otherwise.

1. https://www.cnbc.com/2025/01/14/meta-targeting-lowest-perfor...

2. https://www.cnbc.com/2025/01/08/microsoft-confirms-performan...

rafaelmn

Productivity and performance are not the same thing. You can be a top performer on a project that flops and you're a net negative. Ideally you'd get transferred to a more productive role but there are a lot of variables involved.

fn-mote

Are you sure?

So getting rid of 20% of the workforce and selecting “the bottom 20%” is not a layoff?

jrnng

Imo the term layoff used to mean something different. Getting rid of "dead wood" should be a firing, not a layoff.

Layoff is "this division or project is a dead end or not aligned with strategy and we are shutting it down, and don't have other spots to place everyone"

conception

One comment on this is when you leave a company is customary to give your two weeks. Companies rarely offer than consideration for employees. This unbalanced power dynamic is even greater as a layoff doesn’t mean a catastrophic situation for the company but for the employee it often is. The two events shouldn’t be compared apples to apples.

ahtihn

> Companies rarely offer than consideration for employees

In almost all layoff situations, employees get severance even in the US no?

At least for the big tech layoffs that seemed to be the case.

chaosharmonic

> I don't think you need to "justify layoffs". If a company feels an employee is not being productive, they should be allowed to let them go.

Layoffs, by definition, aren't about individual employees.

glimshe

This is multifaceted question. I agree with what you're saying, but let me add something.

Corporations are greedy and let go of many good people. But they also let go of many people who deserved to go. It's really hard to get rid of bad people, even in the US. But you wouldn't believe how many bad people were in big tech because of the COVID over hiring.

I've seen dozens, if not hundreds of people, who went to FAANG and added next to no value. As a manager in one of these companies, I had to deal with a mix of great people and many who were absolutely taking advantage of the company. I could write a book about it. Good for them, but it's not surprising that the party would end someday.

fifticon

but who takes responsiblility for hiring those 'bad' people in the first place.. I am not saying you should't get rid of them, but the issue makes me think of that kind of people, who for some reason always think that it is someone other than themselves who must adjust and adapt.

glimshe

Those who overhired should have been fired, I agree. It's incredible (or not) that the CEOs weren't eliminated.

Aurornis

Can't speak for every company, but most companies I've worked for with detailed hiring practices would evaluate the long-term outcomes of people that hiring managers chose.

If someone hired a lot of people who had to be laid off later, they would get more supervision and review of future hires.

grogenaut

The people who hired them may be long gone by now.

jayd16

So like, what's the argument here? You felt FAANGs over hired and then had a good round of layoffs so every layoff is good and justified?

eli_gottlieb

> It's really hard to get rid of bad people, even in the US.

Could you explain why it's hard? I've never seen anyone run into any kind of difficulty letting go an at-will employee. The manager can do so at any time, for any reason or no reason at all.

wmeredith

I'm not the poster you were responding to, but I have some experience in this. I am an engineering manager at medium size US company. If I want to fire a poor performer it requires a couple months of detailed documentation on their poor performance, and that's just so I can get them on a PIP (performance improvement plan). That's another 30-90 days. The PIP takes time to prepare and performance during the PIP also has to be rigorously documented.

This has been my experience at two different companies in multiple cases with egregious underperformance. I suppose if an employee assaulted/harassed someone or was doing something else outright illegal like theft or embezzlement, they would be shown the door immediately. But if someone is half-assing their work and dragging the team down, everyone has to put up with it for months as they get second chances, micromanagement, and other special attention before they can actually be let go.

I think it's due to the litigiousness of the US culture. Yes, US companies can fire people at will, but they can also file lawsuits at will, which are costly (time+money) no matter the outcome.

zdragnar

I worked for an agency company (mostly T&M contracts) that went through a round of layoffs almost entirely because they wanted to be "like a family" and the managers didn't let poor performers go. I think they ended up cutting something like 10% of their workforce, including underperformers and all new hires, in an effort to get cash flow moving in the right direction again.

It was incredibly rough- a lot of people who weren't being told they needed to shape up or ship out were instead simply told they're being shipped out. The only upside is managers got better about supporting employees later on who weren't performing, including putting people on PIPs rather than letting them coast.

earthnail

There are internal reasons as well. Letting go of people can be highly disruptive and create uncertainty in your team. It’s a very unpleasant job that can also go wrong, especially if you have to fire loads.

Then there’s the perverse incentive that bigger teams usually equals a promotion. So if you’re the honest manager who manages a tight team and fires people, you won’t get promoted as often.

Top management knows this, of course. To sidestep these misaligned incentives a company-wide one-time layoff is really effective.

stronglikedan

It depends on the size of the company as to what needs to be documented to let someone go. SMBs can let people go much easier, and the smaller, the easier.

But what you cannot do in any circumstance is let people go "for any reason". There are laws against that at any size, and you are looking for a lawsuit if you give a reason.

It's best to just tell them their position has been eliminated due to restructuring (has to be provable if you're a big company), and give them no reason beyond that. If you don't give a reason, they have nothing to bring a lawsuit for.

In summary, reasons are not always required, but are always a liability.

mikestew

And the company can be sued at any time, for any reason or no reason at all. That does not mean the plaintiff will win, but against deep enough pockets, it can be worth a try. PIPs take time, and HR isn’t about to let you skip them, and bad employees know they’ve got six months to spend their workday looking for a new job while not doing their current job. I’ve worked at those companies, and sometimes managed at same, and when OP says they have stories, I believe them.

reactordev

>But you wouldn't believe how many bad people were in big tech because of the COVID over hiring.

There’s no correlation. They hired expecting a certain type of growth. They fired because of AI. The narrative that they were getting rid of bad workers was their excuse, not the reason. Many great engineers got let go. Many project managers that had been with the company through ups and downs. One guy was let go after being poached from a FAANG after his 3rd day. So don’t say anyone deserved it.

ahtihn

Post-covid layoffs happened before ChatGPT, so it's certainly not because of AI.

End of 0 interest rates is the more likely reason.

tharmas

I heard that the purpose of over hiring during Covid was to hoard talent. That is, to prevent another company from hiring that talent.

leetharris

This is the nature of public markets. Not everything should be public. In fact, MOST things should not be public. Because being public forces accountability and liability to shareholders in a way that is completely unlike being private.

A company can be successful by most metrics, but if certain trends are not heading in the right direction, then faith in the stock drops, employee compensation goes down, future investments become dicey, etc.

This is the nature of public companies. This is why they don't want to be public anymore.

screye

> as an excuse to justify layoffs and other activities that transfer wealth and power from employees to management and shareholders

Video game employees (programmers) are famously overworked, layoff prone and have little say in executive matters. I can't imagine how PE could make things worse.

The video game industry has been in an odd place for a while. The 2020s haven't produced many reliable AAA hits.

manoDev

Salaried workers sell their time in advance with promises of promotions, bonuses or stock in the future.

So what (public) companies do is over hire during growth, then lay off later to transfer the value created by these workers to shareholders. Rinse, repeat.

jayd16

Games are a deep pipeline. Technically they would be looking at cost and revenue projections 3-5 years out, not this year or last year.

That said, I think its completely justified for union bargaining to push back on the idea that its the emplpoyees that should burden that problem.

yunyu

As a shareholder of many companies, I would be disappointed if the management team made decisions that disproportionately benefited employees at the expense of other non-employee shareholders.

RobotCaleb

Yeah, because you as the shareholder are worth more to the company and society than the people at the company.

yunyu

The goal of most companies is to maximize returns to shareholders, not society or employees. If it wasn't that I wouldn't have invested.

ActionHank

Won't somebody please think of the executives?

nonethewiser

Video game unions are such an interesting case because the worker is very skilled and the skills are highly transferable. This isn't a situation where you only know how to mill steel and there is only 1 steel mill around. You can stay and fight to unionize or you could just go get a better job right now. The fact that people stay speaks to how passionate they are about the industry, but also how willing they are to settle for less.

8f2ab37a-ed6c

The industry is not in a state where you can just go and get a better job right now. We’ve had three years of relentless layoffs and studio closures, worse than at any other time in history. There’s nowhere to go and US employers in games are disappearing by the day.

jjangkke

i think the union here is overreaching and expectations are unrealistic.

the stakeholders/investors have priority here and they have sold the company to the highest bidder.

at this point anyone participating or showing support behind union is at risk of being profiled and black listed in the industry and not just EA.

its in their collective interest to setup in jurisdictions outside the US where labor laws make the latter illegal but certainly not in many parts of the world and jurisdiction arbitrage makes it a very real probability.

my advice to anyone working at EA or any unionized white collar jobs in this nidustry and relate to keep your heads down and don't post your thoughts in public.

fair_enough

Not to be pedantic, but I think you mean "shareholders".

In the context of software, the term "stakeholder" means anyone who will use the project being worked on.

In the context of business, "stakeholder" is an intentionally nebulous term designed to obfuscate who is supposed to be enriched by the actions of the company. Usually that term is a way of deceiving people into thinking the company's goal is to serve "the community", when in reality it's serving the shareholders at the expense of the well-being of the community.

Sometimes, it's a way of deceiving the shareholder for the benefit of the executives, e.g. some "DEI" bullshit that hurts the community, the shareholders, and most of the employees just to feed the HR department and the C-suite's insatiable lust for power.

hollerith

>Usually that term is a way of deceiving people into thinking the company's goal is to serve "the community"

It can also encourage workers to consider the needs of customers and suppliers, the ignoring of which will tend to eventually harm the company and its shareholders. I.e., it is not always a weasel word.

fair_enough

Like I said, that's the engineering context of the word.

In business managerial side of operations, "stakeholder" is definitely a weasel word.

The word "stakeholder" in "stakeholder capitalism" as used by the World Economic Forum literally means "every single person on Earth". Unless you think Klaus Schwab also considers the possibility of life in the Andromeda Galaxy, it doesn't get anymore nebulous than that. The word describes something cloudy and ginormous- like a nebula.

AlexandrB

It's almost always a weasel word because if you meant customer you would just say customer. Saying "stakeholder" permits a level of ambiguity about whose interests are being represented.

jayd16

If pushing back against a cash out is overreaching then what would be a valid union power?

wahnfrieden

OP is anti-union, so, likely nothing.

Their points are cause for unions to organize across companies and industries (though solidarity strike action is illegal in the US because it's effective). But they take for granted that employers should have their way and that employee interests are best served by appeasing owners.

afavour

> i think the union here is overreaching

I think concern over company ownership is a core responsibility of a union.

> my advice to anyone working at EA or any unionized white collar jobs in this nidustry and relate to keep your heads down and don't post your thoughts in public.

That's one of the strengths of a union: established rules about what is an isn't acceptable, which include your right to speak out.

fidotron

> the stakeholders/investors have priority here and they have sold the company to the highest bidder.

At EA a lot of the long term employees had significant stock holdings too.

regularization

> ny advice to anyone working at EA or any unionized white collar jobs in this nidustry and relate to keep your heads down and don't post your thoughts in public.

I'd note that the workers creating the wealth and doing all the work are among the vanguard of workers doing the best in the world, but the advice given sounds similar to advice that could have been given to slaves on a plantation, in case the masters be upset.

The workers do the work and create the wealth of these companies. The apparatus over them is just parasites sucking their labor off into profits.

Whatever the immediate strategy should be, organizing, educating and agitating is the order of the day, for anyone with any sort of backbone or self-worth (of course narcissistic notions to consider oneself a genius and everyone else is dead wood, as someone put it here, has been encouraged).

tempusalaria

Most of EA’s revenue comes from franchise games that are way below typical AAA standard. EA’s value is from IP not talent

nonethewiser

Might be a bit hasty to compare them to slaves.

It also doesnt make senes that someone who creates all the value wouldnt just leave and capture all the value themselves. It's not like they're being forced to work for the parasite. Oh wait - maybe thats where the slavery comes in.

wat10000

The stakeholders/investors have nothing without the employees. The owners may have legal control of the company, but they can't force the company's employees to come to work, and their investment is worthless if that happens. That gives the employees some power here. There's nothing wrong with using it.

jmyeet

Private equity is cancer. It should be illegal. It adds nothing of value and just hollows out a company for short term profit-taking while hoping nobody notices how your restructure is laden with exploding debt.

This will kill EA, period.

IIRC I read the other day there are more private equity firms in the US than McDonald's now. We produce nothing but weapons now as well as financial chicanery like private equity.

next_xibalba

All I ever hear about it how hellish it is to work in the video game industry. Why do people stay? How do companies retain employees?

gruez

https://en.wikipedia.org/wiki/Compensating_differential

Making video games is a cool job. Making enterprise CRUD software isn't. Video game studios can therefore treat workers worse and get away with it because for at least some subset of the workforce, they'll put up with it.

nonethewiser

It's one thing to stay despite the tough conditions because you love games. It's another thing to stay and expect things to change. The act of staying is precisely the thing that is enforcing the bad conditions.

a13o

Most people don’t stay. They burn out and find work/life balance in other fields.

Once they realize how depressed their wages were in the games industry there’s no hope of getting them back.

gdulli

I had good experiences, but that's not fodder for loud vanity blogging so the world doesn't hear about it.

uyzstvqs

That applies to AAA games, where you make awful games for awful companies. Being an indie dev is great, and you can make millions by yourself if your game gets popular.

Recent example: "Megabonk" was made by a solo indie dev in a few months. It has reportedly sold around 2 million copies at $10 in 1 month.

thrance

It is hellish because there are a lot of people who want to work in video games. Workers having to compete lead to bad working conditions, as employers push the boundaries of what they can get away with while still finding enough workers to fill their positions.

nonethewiser

For sure. Which is why it's weird that someone would stay and expect things to improve. As we've made abundantly clear, the willingness to stay is precisely why the conditions are bad.

doctorpangloss

the industry is vast and there are many experiences. It's certainly not hellish for the 3 guys + contractors who made Silksong, or for Lucas Pope, or for many of the people working at huge mobile game studios.

EA makes games with numbers in their names. They do not take on a lot of risk, which means "anyone" could do it. So they have to work very, very hard. This is NOT a complicated idea.

doctorpangloss

Games are experiences, all aspects of the experience, such as how the game is made and by whom, is on the table (is “valid”).

That said, the best way to achieve the goals of the article at a studio like EA is make it an issue for the games’ primary audience, 13 year old boys.

The way that comments like these get downvoted shows why these developer union guys, whom I support, have so far to go.

null

[deleted]

lofaszvanitt

"EA is one of the largest video game developers and publishers in the world." Yet, it creates zero value. As an added plus EA is a publicly traded company....

jsbg

> Yet, it creates zero value.

Then why do people give them money?

dunkvg

What he meant is that company's MO is buying IPs of successful franchises that are dear to many gamers, release 1-2 crappy games on that IP that is filled to the brim with microtransactions which is not well received by the customers (but makes them money), resulting in the death of that franchise. Rinse and repeat for whatever IPs still remain to be bought.

It creates money, but contributes 0 or negative value for the actual gaming industry, unlike other companies like FromSoft that consistently hits the ball out of the park, pushing the envelope on new franchises and new gaming genres. THAT, is creating value.

gruez

>which is not well received by the customers (but makes them money),

stated preference vs revealed preference, or alternately, the people commenting about games on HN or reddit aren't reflective of the average EA customer.

mikkupikku

There are certainly a lot of people who do actually like their games, but a lot of their revenue comes from a combination of aggressive marketting and that old P.T. Barnum adage. There's a lot of new gamers born every minute, and it takes being burned a few times before somebody learns to avoid EA products.

dgfitz

Yeah, it’s like saying Netflix doesn’t create value, or Universal Pictures doesn’t create value. I do not agree with the GP. As far as I can tell, openAI has created very, very negative value as of today, financially.

jayd16

Not liking Battlefield 6, I take it?

daedrdev

Value is subjective