Codemasters Confirms Layoffs Amid 2025 Portfolio Shift

Codemasters is a veteran UK-based game developer, and they have confirmed layoffs as it shifts its focus toward a portfolio focus. Founded in 1986, the studio has built a reputation for high-quality racing games. Games like F1, Dirt, and Grid. In 202,1, Electronic Arts (EA) acquired Codemasters for $1.2 billion to bolster its racing game lineup. Recent news, however, points to a major change with layoffs tied to the studio’s decision to step away from rally games and prioritize its F1 franchise.

Layoffs at Codemasters

The layoffs at Codemasters are part of EA’s wider restructuring efforts amid financial struggles. On January 21, 2025, EA shared preliminary third-quarter results, forecasting a mid-single-digit drop in live services net bookings. This downturn stems from weak performance in titles like EA Sports FC 25 and Dragon Age: The Veilguard, which only reached 1.5 million players—half of what was expected—according to an EA Press Release. EA’s response includes cost-cutting measures, with layoffs impacting an estimated 300-400 roles across the company, as reported by Bloomberg. While specific numbers for Codemasters remain undisclosed, some employees are being reassigned to other EA Sports projects, notably the F1 series, per VGC.

Strategic Shift to F1

The layoffs align with Codemasters’ choice to end its World Rally Championship (WRC) partnership announced on April 30, 2025. This decision canceled future rally projects, including a follow-up to EA Sports WRC. The WRC license, set to lapse in 2027, won’t be renewed, as detailed by Traxion. Instead, Codemasters is doubling down on its F1 series, with F1 25 slated for release on May 30, 2025, across PC, PS5, and Xbox Series X|S, according to GameSpot. This pivot reflects EA’s focus on licensed IP and live services, which have a strong track record. They still abandoned rally games, and this disappoints fans. Fans who valued titles like Dirt Rally 2 for their realism, as noted by GameSpot.

The layoffs and shift away from rally games signal a new chapter for Codemasters. Focusing on F1 keeps the studio competitive in racing games. Losing rally titles and jobs stings for its legacy and fans. The gaming industry has faced similar challenges. With over 7,000 layoffs reported in 2023 alone, per GameRant. For more updates, check out Total Apex Gaming or their news section.