Report: EA About To Fire 500-1000 People

According to a report on Startup Grind, a site that normally deals with tech companies and their founders, publisher Electronic Arts will very soon lay off as many as 1000 employees.

Originally planned to take place last week, the lay offs have reportedly been slightly postponed, though may now take place " as soon as this week".

The report claims between 500-1000 employees will be affected. That's a lot of people, even for a company as big as Electronic Arts.

Startup Grind's report goes on to speculate the layoffs are a result of a disappointing 2011 in which a few hit games (like Battlefield 3) had their sales overshadowed by an overspend on marketing, expensive acquisitions and disappointing subscriber numbers for big-budget MMO Star Wars: Old Republic.

We've contacted EA for confirmation, and will update if we hear back.

Exclusive: Electronic Arts Set To Lay Off +500 Employees [Startup Grind]


Comments

    Looks like EA is getting ready to focus on core franchises, this means that the riskier games will come from its publishing arm rather than in house developers.

      Can't think of any even remotely risky, or at least original first party EA games in the last 5 years.. correct me if I'm wrong though, not claiming to be a walking encyclopedia. I was just under the impression their whole business plan was only develop minimal risk, samey titles or those that market research shows are becoming increasingly popular.

        BUT OMFG MASS EFFECT HAS TEH GAYS! GAYS ARE HAEPS RISKY!

        Yeah, people be morons.

        They were trying for a bit there. Mirror's Edge & Dead Space both being examples. New IPs, and in the case of Mirror's Edge trying something a bit different. And you could argue that SWTOR was extremely risky, in the business sense of the word.

        I think every major publisher right now is risk-averse, not just EA.

          Yeah I remember those days. Mirrors Edge, Dead Space, new & different kind of games that heralded an exciting new direction from a major company...

          In retrospect I was a bit stupid to be anything less than 100% cynical about it.

          Wonder if DICE could do a kickstarter for Mirrors Edge 2, EA probably own it all

            DICE's stated intention is to eventually do Mirror's Edge 2. But they're pretty busy these days. EA considers them basically their most reliable studio these days outside their sports franchises ... so there is pretty much unending work going on there. ME2 will only come when they get a lull.

          SWTOR was risky because they made it so.

          they could easily have funded KOTOR3 for far less and made decent pay offs. SWTOR is something that really needs to be looked at in the long term.(Will it still make them money in 4 years time)

          Mostly do to the economic climate we're in at the moment, when compared to the time when Mirror's Edge and Dead Space came out.

    Anyone else think they held it off because of the whole "Worst Company In America" thing... would have been pretty bad timing.

    Fingers crossed no-one in the Melbourne EA office gets made redundant.

      Given that we are above parity, do not be surprised if EA completely axes it's Australian office - seriously when publishers feel the squeeze they have been lately closing the Australian branches to economise.

    That is what you get for getting greedy and taking on World of warcraft at its own game :(
    I guessed this would happen 10 seconds after they announced swotor..

    I feel bad for all the people losing their jobs over this. We all told EA that making a MMO and a ridiculously expensive one at that was a bad idea. Chasing WoW 's success was stupid from the beginning, but if they had decided to polish their MMO instead of spending their budget on marketing, they might very well have got the subscribers they needed

    its a bit tragic for the staff who will beer laid off when guild wars 2 gazumps Swype and the fleets become even more empty

    its a bit tragic for the staff who will beer laid off when guild wars 2 gazumps Swtor and the fleets become even more empty

    Their sales would be a lot better if they ditched origin and provided their titles on Steam again.

      Yeah, origin is all dandy when you had a rush of AAA games but it must dry up considerably once there is nothing new and big being released.

    That is terrible news but that Star Wars picture is freakin' sweet

    My heart goes out to those who may get laid off
    It is a tough economy

    Please forgive me if I am wrong, but knowing that SWTOR was going to be expensive, and allowing for the fact that they had pre-orders available from june-july, I think they made most of their original expenditure back from the pre-orders/sales of the game when it came out. Ongoing monthly costs are covered by the subscription, they just arent making as much profit as they would of liked.

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