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December 20, 2008 Saturday
Updated
Dec 20, 2008
EA to cut 1,000 jobs
Electronic Arts to cut more jobs, close studios
NEW YORK - STRUGGLING US videogame maker Electronic Arts Inc announced additional job cuts on Friday and plans to merge or close at least nine studios and publishing facilities.

The Redwood City, California, company said it was cutting its worldwide workforce by 10 per cent, or 1,000 jobs, an increase of four per cent over the six per cent workforce reduction announced in October.

'The restructuring also calls for consolidation or closure of at least nine studio and publishing locations,' the publisher of such popular titles as Madden NFL 09, Spore and Warhammer Online said in a statement.

'EA expects the restructuring plan will result in annual cost savings of approximately US$120 million (S$175.5 million) and restructuring charges of approximately US$55-US$65 million over the next several quarters,' the company said.

The videogame maker said it expects the moves to be completed by March 31, 2009.

It said one of the plants to be consolidated is the Black Box Studio facility in Vancouver, British Columbia, which will be moved to a nearby EA studio in Burnaby, British Columbia.

EA also said it would be 'implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities'.

'The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers,' it said.

EA reported a net loss of US$310 million during the second quarter and warned earlier this month that its fiscal 2009 results would be lower than forecast because of slower-than-expected sales in North America and Europe. -- AFP

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