Codemasters, the acclaimed British racing game studio behind franchises like DiRT and EA Sports WRC, has confirmed that it plans to lay off some employees in the near future. This development marks the second wave of downsizing at the studio in less than two years and comes shortly after Electronic Arts, its parent company, began wider restructuring efforts affecting several subsidiaries.
The news follows the studio’s decision not to renew its World Rally Championship (WRC) license, signaling a major shift in Codemasters’ production strategy. While a limited version of the license runs until 2027, the studio has already halted development on its latest rally title, EA Sports WRC, released in 2023.
“We’ve begun the difficult process of reducing some roles,” a Codemasters representative told VGC, adding that not all affected positions would result in layoffs, as EA is looking for internal opportunities for impacted staff.
🎮 A Broader Trend Across EA
Codemasters’ layoffs are part of a larger trend of downsizing across EA in 2025. Earlier this spring, Respawn Entertainment canceled two projects and laid off dozens of developers. More cuts are on the horizon, with EA reportedly planning to eliminate an additional 200 to 300 roles, according to a Bloomberg report published on April 29.
The root of this restructuring can be traced to EA’s January 2025 earnings report, where the company revealed underperformance across several flagship titles. Notably, Dragon Age: The Veilguard and EA Sports FC 25 both failed to meet sales expectations. EA’s stock dropped nearly 20% following the report, though it has since rebounded and gained around four points since news of the layoffs became public.
📉 What’s Next for Codemasters?
The end of the WRC partnership and looming layoffs suggest a significant pivot for Codemasters. Once considered the industry’s leading rally game developer, the studio now faces an uncertain future as it aligns more closely with EA’s evolving strategy.
Industry analysts speculate that Codemasters may be reabsorbed into EA’s broader sports label or shifted to work on other racing IPs like GRID or F1, but no formal announcement has been made.
💬 Industry Impact
These layoffs reflect broader challenges in the gaming industry, including rising production costs, franchise fatigue, and post-pandemic market corrections. While EA continues to restructure, developers and players alike are left wondering what these changes will mean for the future of their favorite studios and games.