Game over for hundreds of EA employees

Electronic Arts, the world's largest video game publisher, on Wednesday confirmed reports that it is laying off 5 percent of its work force, or between 325 and 350 people.

The move, first reported by GameSpot, comes a day ahead of EA's release of its third-quarter earnings.

In late December, EA said its holiday sales were disappointing and that it would likely not meet its third-quarter sales and earning guidance.

But Wednesday, EA corporate communications manager Trudy Muller told CNET News.com that the layoffs were not related to holiday sales but were instead about realigning the company's resources as it grapples with the transition from current-generation to next-generation consoles.

Microsoft in November released its next-generation console, the Xbox 360, and both Sony and Nintendo are expected this year to launch new machines, the PlayStation 3 and the Revolution, respectively.

"It's not related to (game sales) performance," Muller said. "It's more reconciling the costs of learning new systems with what the needs of the new systems are. You realign your resources to figure out what your priorities are and then figure out how to execute them most efficiently."

Muller said the layoffs would affect the entire company, including its Redwood Shores, Calif., headquarters, and confirmed GameSpot's report that some employees at its Vancouver, British Columbia, and Tiburon, Calif., studios would lose their jobs.

But even as EA is dealing with sluggish sales and the console transition, it's also readying for the release of two big new titles. "The Godfather," a game based on the award-winning movies, is scheduled for a late-March release, while "Lord of the Rings, Battle for Middle-Earth II" is slated for a late February launch.

[Vetter83]

EA got greedy!

"pigs get fat...hogs get slaughtered..."
EA puts out a piece of software that barely runs, is full of bugs and 8 months later it has already sold one add on game but havent fixed the original game! I personally wont buy ANYTHING done by EA til they make good on BATTLEFIELD 2. Enjoy unemployment EA Whiteshirts!!

[i_am_still_wade]

Yeah, I'm boycotting EA too.

Ever since they couldn't beat Sega's football game and got exclusives rights to the NFL, I decided to boycott EA. A classic case of we can't beat them, so we'll destroy them.

I hope EA goes under.

[City_Of_LA]

Been boycotting them for years now.

Got tired of playing a rehash every year of the same games. The day they actually come up with something good, I might consider buying again.

[heystoopid]

Well

Well, someone has to pay for the CEO & Chairman's pay rise and stock options, along with the cost of the games emulation software license fees for Xbox360 , Sony PS#? & Nintendo games platfoms, together with full compliance to all employment laws that the standard company employment contracts failed to mention!

Oh well, the remaining staff, will now be expected to work 10% harder,at same renumeration to compensate!

welocome to corporate america

This is not only the case in game companies - it is happening all over the place in corporate america - the mantra: do more with less. Why we do value our time off work, it is hard to argue against the revenue per emplyee numbers of some of the asian/indian companies I suppose. Thus you could argue that over time as people get lazier over there and we get more productive, an equilibrium will be reached eventually.

[markdoiron]

My Take

it takes fewer employees to recreate the same games that they've been making for years now. sales were down for the holidays? duh! try being creative and develop some original games!

mark d.

[AlphaTwo]

Devil's advocate

Original games? I typically like to bash EA myself, but I will play a game of Devil's advocate now: What was the best selling game of 2005 in North America? What was in the top 10 in North America? (Hint: All sequals/yearly updates). Why should EA bother with originality if their main market doesn't care?

In contrast, look at the other side of the pond: Japan, and you will see that if a market cared about originality, EA would not stand a chance in selling games.

[Jake Leone]

Message to EA employees "Game production is a cut-throat business"

Game companies are always on hiring and laying off. EA has been doing this for years (often quietly).

The CEO does have a high personal dollar motivation to maintain extreme profitability, definitely a greed oriented layoff.

Layoffs at game companies don't promote competitiveness, software quality, or originality. Just as in the movie industry (where we are seeing constant remakes) having fewer employees just encourages re-use, re-makes, and re-packaging. So really the gamer is also going to lose out in these layoff as well.

I would encourage all EA employees to seek employment in other areas of the Software business, I did more than a decade ago, and I haven't looked back. The game production environment is a cut-throat, politically charged, painful environment. You will find that other industries have customers, managers, even CEO's who can appreciate your hard work and reward you well for your hard work.

[bobby_brady]

EA is a programmers sweat-shop

No way would I recommend anyone work there, unless you have absolutely no life.

[jwarren.carroll]

Uh... huh...

There was a guy in my major with some serious social problems (which was kinda the norm) who went to work for EA. And yes, he had absolutely no life outside of programming. Considering he just got hired in May of 05 I wonder if he still has a job.