Codemasters has confirmed an unspecified number of layoffs, following the news that it’s “pausing” development on its historic rally game franchises.
Earlier this week, Codemasters – which was acquired by Electronic Arts in 2021 – confirmed it had ended its partnership with the World Rally Championship (WRC), and that it would thus be “pausing” development plans for future rally titles.
In a statement to VGC, the EA-owned studio has now confirmed that layoffs will occur, as well as the redeployment of staff to different areas of EA Sports.
“As a business, we are constantly evolving to meet the growing needs of our players and driving greater focus across our portfolio,” a spokesperson said. “This has led us to look at reducing some roles, while we redeploy as many as possible against our strategic priorities.”
A day earlier, EA confirmed cuts across its wider workforce, reportedly affecting up to 400 employees. UK employment law requires EA to consult UK employees for a minimum of 30 days before making any redundancies, including exploring ways of avoiding them.
Codemasters’ exit from the rally game business ends a decades-long run, which started with the first Colin McRae game in 1998, and later included the DiRT and WRC games.
EA acquired Codemasters for $1.2 billion in early 2021, having trumped a previously accepted offer to buy the company made by Rockstar owner Take-Two.
The acquisition brought Codemasters’ F1 and FIA World Rally Championship licenses, and its owned IPs Grid, Dirt and Project Cars, under the same roof as EA’s Need for Speed and Burnout franchises.
Discussing the strategic rationale behind the deal prior to its completion, EA said it would create “a global leader in racing entertainment” and enable it “to release new racing experiences annually”.
In 2022, Codemasters’ Dirt 5 team in Cheshire was integrated into fellow UK-based EA studio Criterion Games “to create the future of Need for Speed”.
Some of Codemasters’ recent releases in the F1 and WRC franchises have reportedly struggled commercially.
