Electronic Arts (EA) confirmed this week the shutdown of Cliffhanger Games, a Seattle studio established six years ago by Kevin Stephens, a key figure behind Middle-earth: Shadow of Mordor. The team had been developing a standalone title based on Marvel’s Black Panther.

This follows recent cuts at Respawn Entertainment, where 300–400 staff were laid off in April. Sources suggest more reductions may follow. As reported by industry insider eXtas1s, EA plans to close Codemasters’ main offices, potentially cutting around 400 roles, with remaining staff redistributed to EA Sports (for F1 projects) and a new Need for Speed title.

Insiders indicate over 400 additional job losses are anticipated at EA, including Codemasters’ central offices closing. Affected teams will transition to F1 development and an upcoming Need for Speed installment.

This adds to ongoing turmoil in gaming, where 2025 has seen widespread studio downsizing. After acquiring Codemasters in 2021 through a $1.2 billion deal—outbidding Take-Two’s $1 billion offer—EA integrated the UK studio into its racing portfolio. Codemasters’ leadership initially praised the alignment, but restructuring began swiftly.

Three years post-acquisition, Codemasters merged with Criterion Games for Need for Speed development. Further layoffs hit in late 2023, and recent reports confirm the studio will no longer produce WRC titles after Nacon reclaimed the license.

EA now appears to narrow Codemasters’ focus exclusively to Formula 1 games. F1 25 launched recently, earning positive feedback. Reviewer Chris Wray noted:

F1 25 delivers polished visuals, an expanded career mode, and fresh additions. While minor flaws exist, they’re overshadowed by the overall quality of Codemasters’ latest release.