EA cutting 1,100 jobs

Electronic Arts on Tuesday said it would be laying off about 1,100 employees, or about 11 percent of its workforce, in order to cut costs.

The news came as part of EA's third-quarter earnings announcement, and could be the final word on a set of staff reductions it has been talking about since October. Then, EA said it would be letting go about 6 percent, and that number jumped to 10 percent, or about 1,000 people, in December.

Now, the world's largest publisher of video games said it will close down 12 facilities as part of the cost-cutting, and will likely incur restructuring charges of between $65 million and $75 million.

Previously, the company had said the layoffs and studio closings should be complete by March 31.

Overall, EA said it expects to reduce operating expenses in fiscal 2010 by about $500 million.

While the video game industry as a whole has performed better than most others, and has been seen by some as recession-proof, there is little doubt that in order to stay competitive, most companies in the games business are going to have to streamline. Among those who have had to slash staff are Microsoft Game Studios, which was hit hard by Microsoft's recent announcement of about 5,000 layoffs, and Avalanche Studios, which cut nearly half of its 160 employees in October.

[pgp_protector]

Please let it be from the group demanding all that crappy DRM Software protection on their games.

[Inconnux]

No big surprise. EA and its stance with Securom has angered it main customers, the hardcore gamer.
Just go over to sites like gamespot and see how much HATE (not just dislike!) there is because of this issue. Because of its stance with Securom, many gamers are boycotting EA products because they are sick of renting crippled products and being treated like criminals. If you look at other articles that are related like 'video game industry roars in December' you will see that they are losing business because of their own stupidity.

I buy all my games through Steam now but Securom is over the top DRM. EA has lost my business as long as they use Securom on their PC products.

[dcmichie]

Maybe this is why Sims 3 was pushed back to June 2

Wow, by my calculations they could pay the 1,100 employees for a year at 68,000 + for a year based on their "restructuring charges of between $65 million and $75 million", Someone is double dipping and only concerned for their stockholders in a bad economy.

[mcodirtpig]

Well this comes as no supprise EA has been cheating the player database for many years now! EA has become a part of the Mom,Dad give me now gaming world. $50.00 throw-away disc's, games that come out of prodution full of bugs and dissapointments! EA proved its *we dont care* policy a few years ago with the closure of the late great MotorCityOnline, EA made claim they needed the servers for future developements. Ok!! well those future developements have gotten them all the way to down-sizing cutting 1,100 employees. EA get a clue! listen to the folks paying for your games. I boycotted EA after replacement for MCO by the failed wonder NeedForSpeed series with all of its bugs,cheats and poor online play!
I may be a little out of touch due to my boycott of EA but I see it is business as usual for EA!
p.s. this is not a personal attack on EA just one dissapointed cutomer from an EA game that has since been forgotten by most. basically a HA HA !

[moshelinho]

EA have been making far too crappy games lately, no wonder they arent doing good business.