The bad news is now official: Codemasters has confirmed that Electronic Arts carried out layoffs within the studio, just as the team also pulled the plug on its long-standing partnership with the WRC and rally game development.

What was once speculation is now fact. Codemasters, one of the most celebrated names in racing game development, has confirmed that Electronic Arts has made staff cuts affecting the team behind the F1 franchise. The news comes shortly after the studio officially announced that it would no longer develop rally games following the end of its collaboration with the World Rally Championship (WRC). That means EA Sports WRC will be the final entry in that series—a sobering end to an era of off-road racing excellence.

A Racing Powerhouse Feels the Blow

For over 20 years, Codemasters has stood as a pillar of racing game design, responsible for hits like GRID, Project Cars, and the F1 games. Known for merging realism with pure motorsport passion, the British studio earned a place among the elite. When EA acquired Codemasters, many hoped it would breathe new life into dormant franchises such as Need for Speed and its iconic rally titles. That hope has faded fast. A few days ago, EA announced it was laying off more than 300 employees. The spotlight was initially on Respawn Entertainment, currently managing Star Wars Jedi and Apex Legends, but now we know Codemasters was also hit—and hard.

Codemasters Confirms Internal Layoffs

Until now, it wasn’t clear whether Codemasters had been affected by EA’s sweeping cost-cutting measures. But thanks to a report by VGC, we now have confirmation: layoffs have taken place within the studio. “As a company, we’re constantly evolving to meet the growing needs of our players and better align our efforts with our portfolio,” a Codemasters spokesperson said in a statement.

The spokesperson added: “This has led us to consider reducing some roles, while redeploying as many team members as possible to areas that align with our strategic priorities.” So the community’s concerns weren’t unfounded. We still don’t know exactly how deep the cuts go, but the situation clearly signals a period of instability. And with F1 25 just weeks away, expectations are high for a game that must prove Codemasters hasn’t lost its touch, even as internal turmoil brews behind the scenes.

source: 3djuegos