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EA Silent on Studio, Game Fallout After Layoff Announcement
Posted by Jared Newman, 343 days ago Dec 19, 2008 12:15

EA

Publisher Electronic Arts declined to elaborate on which games would be affected by studio closures and layoffs announced this morning.

Spokesman Jeff Brown told TGR that the company won’t be revealing any specifics in that regard until their February stock report.

The layoffs will affect 1,000 employees, or 10 percent of EA’s workforce. That’s 4 percent more than what the company originally estimated on October 30. Job cuts should be fully executed by March 31 of next year.

In addition to the layoffs, at least nine studios and publishing locations will close. The only studio confirmed among this group is the Black Box Studio facility in Vancouver. Employees who are staying on from that location will be consolidated into another studio in Burnaby, British Columbia.

The cuts and closures will save EA roughly $120 million per year, but will cost $55 million to $65 million over "the next several quarters," the company said in a statement.

Obviously, EA won’t be able to release as many games in the coming years; the company said they can now focus on "hit games with higher margin opportunities." However, EA did offer assurances that they won’t easily throw away gamer credibility. New IP such as Dead Space and Mirror’s Edge were generally well-received.

"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," EA said in the statement.

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