EA Planning to lay off 10% of it's workers. (1,000 employees)

[Kayos]

EA says it will lay off a further 4 percent of its workforce as it either consolidates or closes down "at least nine" of its studios. Including the company's recently-announced headcount reduction, this brings the company's planned layoffs to 10 percent of its total -- 1,000 employees.

EA's Vancouver-based Black Box studio is the only one specifically referenced in the company's announcement. Black Box, developer of the Need For Speed franchise and Skate series, will see its teams and projects moved to EA's nearby Burnaby, British Columbia studio.

The company declined to provide any details on the further planned closures and consolidations. It says that the consolidation and headcount reduction will save it $120 million annually, but will incur restructuring charges of $55-65 million over the next several quarters.

The plans announced today expand upon the restructuring initiatives EA announced at the end of October, when the company said it would lay off 600 employees, or six percent of its total. Sources believed at the time that the affected studios included Electronic Arts Los Angeles and Pandemic, as EA said it was effecting "a global reduction, not just focused on one studio or one location."

EA recently said its key titles underperformed in the latter part of this year, and as such, alongside the uncertain economic environment, it would need to reduce its financial estimates -- and its title portfolio -- into the new year. It also recently abandoned its plans to open a third location in Vancouver.

"EA is implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities," said the company in a statement.

"The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers."

[UPDATE: Jeff Brown, vice president of corporate communications at Electronic Arts, clarifies the company's restructuring timeline: "This is not effective immediately," he says. "This is a process that's going to take place over the next three months, and straight into our next fiscal year on April 1."

Brown declined to comment further on the specifics of the planned consolidations or closures.]

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EA is pretty much the biggest publisher so obviously they will be effected by the economy, but laying off 10% of your work force is a huge loss.

The losses they took from new franchise like Mirror's Edge has hit them pretty hard and it's too bad because it was pretty good to see some fresh new ideas come from them.

Comments?

 

[John Klyne]

Ow wow, the gaming industry is now cutting off on it's employees. EA loseing 10% of the workers may not make a big impact to what they create in my opinion. It just means, less guys that bring coffee to other guys, less secretaries for anything, and a couple less programmers.

I do feel bad for the workers losing a job, but as far as the game aspect of this......it will just take an extra 2 years or so to make the game they had in mind of making.

 

[Kayos]

Ow wow, the gaming industry is now cutting off on it's employees.

Actually I think it effects EA more due to it being such a big company. It has the most to lose.

The game industry is more recession proof than a lot of the other industries.

 

[xPlozion]

it's sad, but i didn't like ea that much to begin w/. sure they have the sports franchises, but they're generally the same year in and year out. the other games they have are ok, but generally not my preference due to the arcadish style associated w/ them, especially w/ the shooters. they have also tried and failed w/ a few new ideas, which i would imagine put them back on the financial side.

when we see good companies like activision (cod), ubisoft (clancy games) and others following suit w/ ea, then we've got a problem.

 

[Livewire]

it's sad, but i didn't like ea that much to begin w/. sure they have the sports franchises, but they're generally the same year in and year out. the other games they have are ok, but generally not my preference due to the arcadish style associated w/ them, especially w/ the shooters. they have also tried and failed w/ a few new ideas, which i would imagine put them back on the financial side.

when we see good companies like activision (cod), ubisoft (clancy games) and others following suit w/ ea, then we've got a problem.

I'm of a similar opinion but less because of the games they're releasing and more because of the unnecessary overkill DRM installed with their latest games. Part of their troubles are stemming from that I'm guessing, cause they've gone and pi**ed off a lot of gamers, myself included.