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EA to increase workforce cuts to 10 percent
- December 22, 2008 07:50 AM PST
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Video game maker Electronic Arts said Friday it plans to cut 1,000 jobs, or 10 percent of its workforce, after announcing in October it would cut just 6 percent.
Not even the recent influx of non-sequels can help EA
The news follows a warning last week that it would miss its revenue and earnings targets for fiscal-year 2009. Most of the job cuts should be completed by the end of the fiscal year on March 31, 2009, EA said.
EA, in Redwood City, California, also plans to consolidate nine of its locations, closing some of them. One of the facilities that will close is Black Box Studio in Vancouver, British Columbia, the company said Friday. Its development teams and game franchises will move to an EA studio nearby in Burnaby, British Columbia.
EA is just one of many technology companies being hit by the U.S. recession. According to the nonpartisan National Bureau of Economic Research, the U.S. economy has been in a recession since December 2007.
EA, which publishes the popular Rock Band and John Madden NFL football games, said it missed 2009 financial expectations because of lower than expected sales across North America and Europe. To remedy its financial situation, EA has said it will take costs out of its business by reducing its product portfolio for fiscal 2010, cutting jobs and consolidating facilities.
Job cuts and restructuring should save the company about US$120 million annually, EA said Friday. However, the company will be hit with restructuring charges of about $55 million to $65 million over the next several quarters. SMS: Video game maker Electronic Arts said Friday it will cut 10 percent of its workforce, up from the 6 percent cuts it announced earlier.
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- Dec 22 2008 at 08:59:31:AM PST
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Times are tough everywhere. If its between a $60 game and putting food on your families table, gaming is going to loose. Bestbuy had a few games on sale this weekend for $34.99. COD: World at War, Need For Speed, Star Wars: The Force Unleashed and a few more. I'm trying not to spend money on any new games for awhile, got the heads up myself that I might be layed off in the coming month. Just got to prepare myself for it. Cutting some of the excess spending helps out alot.
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Honda_boy wrote:
What happened to video games being recession proof?
Only the company's that make good games & they sell well are recession proof LOL
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AANTHUNDER wrote:
Times are tough everywhere. If its between a $60 game and putting food on your families table, gaming is going to loose. Bestbuy had a few games on sale this weekend for $34.99. COD: World at War, Need For Speed, Star Wars: The Force Unleashed and a few more. I'm trying not to spend money on any new games for awhile, got the heads up myself that I might be layed off in the coming month. Just got to prepare myself for it. Cutting some of the excess spending helps out alot.
Glad I'm layoff proof, my job is gonna be need forever lucky me
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htown4life wrote:
AANTHUNDER wrote:
Times are tough everywhere. If its between a $60 game and putting food on your families table, gaming is going to loose. Bestbuy had a few games on sale this weekend for $34.99. COD: World at War, Need For Speed, Star Wars: The Force Unleashed and a few more. I'm trying not to spend money on any new games for awhile, got the heads up myself that I might be layed off in the coming month. Just got to prepare myself for it. Cutting some of the excess spending helps out alot.
Glad I'm layoff proof, my job is gonna be need forever lucky me
And what job be that htown or answering that question might incrimiate you (lol). I already got offers for employment but I might just scout around awhile or go back to school.
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htown4life wrote:
Honda_boy wrote:What happened to video games being recession proof?Only the company's that make good games & they sell well are recession proof LOL
wtf are you talking about? EA had some of the biggest numbers this year out of all publishers. Have you even seen the list of top sellers they have?
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