EA Confirms Layoff of 900 Employees During "Restructuring" Phase
May 9, 2013 9:47 AM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
I can do a better job
5/13/2013 12:31:14 PM
heck, I can do a better job than those suits; Gabe Newell can vouch for me.
"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot
Quick Note: EA Lays Off Staff in Montreal Game Studio
April 12, 2013, 12:03 PM
Quick Note: EA Wins Worst Company Award for Second Straight Year
April 11, 2013, 6:25 AM
Tech's Biggest Loser on Tax Day: eBay Pays Nearly 99 Percent Tax Rate
April 15, 2015, 3:28 PM
Death and Dragons -- Report Claims Game of Thrones Hit by Piracy "Tidal Wave"
April 10, 2015, 8:37 AM
Court Blocks Twitter and YouTube in Turkey After Pro-Communist Attack in Istanbul
April 6, 2015, 10:53 AM
In Graphics and Quotes: $10.4 Billion Charter & Bright House Merger
April 2, 2015, 5:19 PM
WSJ Report Implies That Google Leveraged Lobbying to Kill Antitrust Abuse Probe
March 25, 2015, 5:37 PM
Nationalist Hackers From Turkey Cause Chaos, Deface Dozens of Sites
March 16, 2015, 12:29 PM
Most Popular Articles
Raytheon $1.9 Billion Purchase of Websense Raises Tough Questions
April 20, 2015, 1:57 PM
HBO to VPN HBO Now Users: Prove You Live in U.S. or We Will Terminate You
April 21, 2015, 12:17 PM
AMD CEO: Windows 10 Will Launch at "The End of July"
April 20, 2015, 7:24 PM
Quick Note: Lady Macbath -- One Japanese Woman's Apple Themed Revenge
April 23, 2015, 11:47 AM
After Record-Setting Week, Samsung Predicts 70 Million GS6/GS6 Edge Sales
April 17, 2015, 8:39 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information