EA Confirms Layoff of 900 Employees During "Restructuring" Phase
May 9, 2013 9:47 AM
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EA says $16 million in operating expenses are due to restructuring costs
Things haven't been going all that well over at Electronic Arts. Despite being one of the biggest companies in the gaming industry, EA has been struggling with profitability. The profitability struggles led the company to shed employees over the last several months.
During its investor call this week, EA confirmed that it let about 900 workers go during its organizational restructuring process. EA also confirmed that the layoffs cost company about $16 million in the short term.
EA's Blake Jorgensen noted during the call that EA had $540 million in operating expenses for the current fiscal quarter. That figure is $15 million higher than the company had expected due to those costs associated with operational expense reducing actions, including layoffs. Some of the extra expense also came from the resignation of EA's CEO John Riccitiello back in March.
Jorgensen also noted that EA's plan for cost reductions would "reduce our overall headcount by approximately 10%." EA previously
the entire staff in its Montréal game studio.
EA was also gifted with the
worst company award
for the second year in a row last month. That award was bestowed on EA from
Much of the blame for EA winning the dubious distinction of the worst company for the second year in a row was blamed on the online server disaster that happened with the company's popular game
. Gaming servers that were overloaded prevented many people who purchase that game from being able to play, sometimes for days.
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5/9/2013 12:48:02 PM
For me it was hard to imagine that in large gaming companies, there are very little gamers in a position to influence/direct/guide how they operate and create games.
Yet, this is exactly what it's like at a friend's office. No gamers to fight and make decisions for gamers.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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