EA plans massive layoffs

November 10, 2009 by Ivan Cronyn  
Filed under News, PC, Playstation, Xbox

Electronic Arts

After EA’s September financial report showed a loss of $391 million, it was clear they’d have to take some action. The layoffs announced recently will involve around 1500 employees, 900 from game development. EA head John Riccitiello also confirmed the cancellation of 12 games, all previously unannounced. The cuts will save an estimated $100 million a year.

“Laying off employees and closing facilities is never pleasant,” John Riccitiello said. “We have a lot of compassion for those impacted but these cuts are essential for transforming our company. Electronic Arts has a core slate of games label and sports franchises that we will iterate on a either annual or bi-annual basis. And I think you know what those major titles are – all of them are selling or have sold in their most recent edition 2 million units or more. After that, we’ve got The Sims and Hasbro, and frankly anything that doesn’t measure up to looking like it can pencil out to be in very high profit contributor and high unit seller got cut from our title slate from this point going forward.”