EA Loses $641M Over Holiday Quarter, Increases Layoffs, Closures

Electronic Arts announced today that its quarter ending December 31 saw a massive loss, totaling $641 million. EA John Riccitiello called the lower than expected earnings "a clear disappointment," announcing additional, extended layoffs.

The company will increase the number of jobs cut to 1,100, up from 1,000, or 11% of its total workforce. It expects approximately 75% of those layoffs to be completed by the end of March 2009. EA will also close more of its facilities than previously planned, announcing that the nine locations it previously planned to consolidated would increase to twelve.

Yes, that means you'll see more "Disturbance in the Workforce" posts for longer than expected.

The company will cut staff at all levels, according to EA execs, including "managers, directors, VPs and above" and put a freeze on raises. It will also cut 30% of its SKUS in 2010, expecting to publish 50 titles across 125 SKUS. The company published 145 SKUs in fiscal 2009.

It announced delays to upcoming marquee titles The Sims 3 and Dragon Age: Origins alongside its quarterly earnings results.

EA's total take for the holiday quarter was $1.74 billion, which was driven by sales of games like FIFA 09, Rock Band 2, Need for Speed Undercover, Rock Band, Left 4 Dead, Dead Space, Madden NFL 09, Littlest Pet Shop, NBA Live 09 and Mirror's Edge.

EA Reports Third Quarter Fiscal Year 2009 Results [Yahoo!]


Comments

    This is a shame. EA have put their best foot forward in 2008 with games like Mirror's Edge, Spore and Boom Blox really trying something new, expanding the possibilities of what can be offered in a game. I would hate to see them reel that backwards in an effort to try and minimize costs.

    @ Dale

    Yeah they did but they screwed it up like always. Mirrors Edge neat game for 4 hours. Then its over. Who would buy that crap for 50 bucks?
    Far Cry 2...they RUINED it with bugs/no variety. Need for Speed Underground...one of the worst in the series.

    I hope EA dies...they don't deserve to be #1 when they make crappy port games.

    When they die out...I hope Valve takes their place...if EA was even 10% like Valve they wouldn't be taking such a hit right now.

    They abused us and now we got wise and we are abusing them.

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