Massive layoffs looming over EA

Brian Ambrozy 9 Nov, 2009 at 3:52pm ET Article published in Gaming

An anonymous source within EA today informed us that in the coming weeks, a huge number of EA staff will be laid off, and some of the layoffs have started today.

No word on exact numbers or where the layoffs will be coming from, but our source stated “15%-20%. I would guess 1500+”

From what we have heard, layoffs are coming across the board, from every studio, in every department.

An internal memo states,

First, we announced a cost restructuring that involves reducing the number of titles for FY11, enabling us to focus and invest more in our most important franchises and our most promising new IPs. This restructuring involves the elimination of approximately 1,500 jobs across EA. Cuts are being made for titles we are eliminating and in support and corporate areas.* Some team sizes are being reduced and programs that are not working as we’d like are being cut. This is a tough decision that comes with a heavy price for our colleagues – but it is the right decision for EA.* We are sympathetic to everyone that is affected and appreciate everyone’s help as we regroup and move forward.

UPDATE: 4:36pm EST

Financials posted on EA.com

Comments

9 Nov 2009 ~ 4:16pm UPSLynx Holy crap...

that is not good. 15%-20% is a massive amount of people for a company that size.
9 Nov 2009 ~ 4:26pm UPSLynx Just saw that our good friend weezul got the cut. Man, that really sucks.
9 Nov 2009 ~ 4:27pm primesuspect Yeah
9 Nov 2009 ~ 4:29pm chrisWhite Oh man, not good at all.
9 Nov 2009 ~ 4:51pm chrisWhite This is classy:

EA has announced that it has acquired Playfish Limited, a leading social games company, for approximately $275 million in cash and approximately $25 million in equity retention arrangements. In addition, the sellers are entitled to up to an additional $100 million in consideration upon the achievement of certain performance milestones. The acquisition accelerates EAâ€™s growth in social entertainment and strengthens its focus on the transition to digital and social gaming.
9 Nov 2009 ~ 8:05pm TiberiusLazarus I'm torn on this. On the one hand I dislike EA for many of the things they have done to the gaming industry over the years (despite the things they did well) and I like hearing bad news for the company, but on the other hand I feel for those who will lose their jobs from said news. Anyways, this probably isn't necessarily bad for EA itself.
9 Nov 2009 ~ 8:10pm Thrax Hopefully they'll sack the entire Madden division.
9 Nov 2009 ~ 8:23pm chrisWhite I doubt it, Madden makes a lot more money then most people suspect.
9 Nov 2009 ~ 8:25pm UPSLynx Tiberius, I was the same until recently. The more industry-related shows I've been to with SIGGRAPH and E3, I've made a lot of friends that work within the many confines of EA. At a corporate level, EA is pretty awful (though they have been getting slightly better) but there are many great people working under the name. It's tragic seeing so many good people busted by this.
9 Nov 2009 ~ 9:07pm bill Wonder how many of these jobs will be heading to India, China, and Eastern Europe.
9 Nov 2009 ~ 9:28pm Sledgehammer70

Bill wrote:

Wonder how many of these jobs will be heading to India, China, and Eastern Europe.

None
10 Nov 2009 ~ 3:38pm Cliff_Forster Madden is the only game some guys play. That's not going anywhere.