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Electronic Arts brings the layoffs: Cuts workforce by 6% photo

The financial bollocks is cutting deep as publishing giant EA finds itself reeling from a net loss of $310 million in Q3 compared to last year's $195 million. In response to the widening losses, Electronic Arts has announced a six percent staff layoff. Ouch.

With a staff of over 9,000 within EA, it is estimated that around 540 employees are lined up for the chopping block. Although revenues are up by 39.7 percent, EA is buckling down for tough times this Christmas as the wider economic climate remains dire. 

"Considering the slow down at retail we’ve seen in October, we are cautious in the short term," explained EA CEO John Riccitiello. 

This is pretty bad news of course for the unfortunate employees of Electronic Arts. The last thing you need to hear during a recession and close to Christmas is that you've lost your job.


Continue: More Electronic Arts stories





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40 comments | showing # 1 to 40

John B's Avatar - Comment posted on 10/30/2008 19:03
John B
I wonder how much they would have saved if they didn't bother paying Sony for their useless DRM.

...not that I'm bitter about EA, mind you... No, never.
Coldbrand's Avatar - Comment posted on 10/30/2008 19:24
Coldbrand
VEGETA WHAT DOES THE SCOUTER SAY ABOUT EA'S STAFF LEVEL?

IT'S OVER 9,000!!!
ShadokatRegn's Avatar - Comment posted on 10/30/2008 19:30
ShadokatRegn
I love how corporations don't seem to be afraid of saying "we're greedy, we needed to protect profit, so these people can fuck off" by calling it "caution".

Dear EA,
Fuck. you.

Layoffs are really hard, especially right now, and this time of year - after the 30th of October (at least in the US) it's hard to even find temporary retail work.
KratosX's Avatar - Comment posted on 10/30/2008 19:32
KratosX
jim that picture is terrible...
VWGTI's Avatar - Comment posted on 10/30/2008 19:45
VWGTI
That dog is fucking adorable.
akathatoneguy's Avatar - Comment posted on 10/30/2008 19:53
akathatoneguy
So what I've gathered is that we shouldn't buy EA products, because they are an ~EVIL CORPORATION~, but we should also be angered when EA lays off people due to poor sales. I mean, you people *DO* realize that if your little wet dreams came true and EA closed down for good, many, many more decent people would lose their jobs, right?
lvl54spacemonkey's Avatar - Comment posted on 10/30/2008 20:08
lvl54spacemonkey
Heh, this after they've been outsourcing all their testing to Romania where they can pay them a pittance to do a shoddier job of the work the UK testers had been doing for years. I'd guess a load of those jobs that are going ill be whats left of EAs UK and US testing teams.
John B's Avatar - Comment posted on 10/30/2008 20:11
John B
@akathatoneguy:

Did you ever think that one just might be directly related to the other? Don't you think it's its just slightly possible that if they'd stop being an "evil corporation" and started to treat their paying customers with more respect by coming out with better games and minimal (or no) DRM that they'd have better sales?

The only tragedy with this situation is that it's almost certainly the grunts who are being punished. The management a-holes who are responsible for the corporate direction that EA and taken are probably sitting all comfy in their office, ready to get that bonus because they cut expenditures.
akathatoneguy's Avatar - Comment posted on 10/30/2008 20:17
akathatoneguy
@ John B-

I *know* they're directly related. It's many of you that pretend that they aren't. You can't openly boycott a company and then bitch and moan when they lay people off due to poor sales. I mean, what do you think is going to happen?

I also love pointing out that folks like yourself enjoy picking and choosing which corporations are going to be evil, regardless of the fact that nearly all corporations are headed up by greedy, evil bastards. It's hilarious that gamers don't mind going to Wal-Mart for a good price or buying goods from other companies that take advantage of child labor, but DRM? THAT'S UNETHICAL!
John B's Avatar - Comment posted on 10/30/2008 20:22
John B
I never shop at WalMart! Come on! We're not all that bad!
akathatoneguy's Avatar - Comment posted on 10/30/2008 20:23
akathatoneguy
Oh, and the "coming out with better games" part- exactly what facts do you have to back up that this is the problem? Dead Space and Mirror's Edge are just a couple examples of recently released or upcoming games that the media and gamers alike have loved. There are plenty others published by EA as well. Bitch all you want about the sports titles, too- they pretty much all average 8's and 9's across the board with reviewers, with the FIFA, NHL, and NBA titles supposedly being in their best years ever.

I've been here long enough to know that people will find any reason they can to hate EA, even if it's just plain made up.

But hey, if you want to pretend that EA is the only game publisher or company in general that shits on consumers or (I'm trying not to laugh here) lays off employees, go right ahead. I'm sorry for interrupting the congregation.
Aberrant Thought's Avatar - Comment posted on 10/30/2008 20:29
Aberrant Thought
Man... maybe I should've purchased two copies of Dead Space...
John B's Avatar - Comment posted on 10/30/2008 20:33
John B
No one said that they're the only company that shits in their customers, but lately they seem to be having a case if diarrhea.

And I've been here long enough to know that people will find any reason to defend {enter company or console here} just because they can. :P
redgopher's Avatar - Comment posted on 10/30/2008 20:36
redgopher
I lost my job yesterday (web company) -- everyone is getting fucked by the stupid economy.
Velt's Avatar - Comment posted on 10/30/2008 21:31
Velt
From reuters (i allready sended this to tips)

"We are not saying the sky is falling," Chief Executive John Riccitiello said in a conference call. "What we are bringing to the table is caution, a recognition that catalog (sales are) weaker, and a commitment to managing our cost...with the specter of a recession over our shoulder."
catsithx's Avatar - Comment posted on 10/30/2008 21:42
catsithx
Well it's a bad economy these things were bound to happen right?
KaL YoshiKa's Avatar - Comment posted on 10/30/2008 21:49
KaL YoshiKa
Well I don't know about you guys but I bought my copy of DRM free Dead Space for 360...I would have bought Spore but I couldn't find a copy that didn't have a built in virus.

Protip for EA : During recession don't treat consumers with reduced spending money like criminals.
Daxelman's Avatar - Comment posted on 10/30/2008 22:14
Daxelman
Is it just me, or did the front page break for a good 3 or 4 hours?
dmgi's Avatar - Comment posted on 10/30/2008 22:30
dmgi
Let's hope it's the Madden team

[/sarcasm]

Sarcasm aside, this is really fucked up since their sales are up and everybody knows that sales go up during the holiday season. Precaution my ass, they just want to pocket the extra profits from the holiday season.
NihonTiger90's Avatar - Comment posted on 10/30/2008 22:30
NihonTiger90
Is SilverDragon around so we can argue if the economy is hurting gaming or not? :p
akathatoneguy's Avatar - Comment posted on 10/30/2008 22:39
akathatoneguy
@ John B-

I am guilty of generalizing my comments towards a kind of combined entity consisting of all the attacks I've seen towards EA here. I honestly do not have any kind of loyalty towards EA or anyone else, but the extreme nature of the EA attack comments seems to push me further and further in the other direction.

But hey, at least you don't shop at Wal-Mart, right? I'm bummed that it's the only place to get the AC/DC Rock Band disc...
Crunshii's Avatar - Comment posted on 10/30/2008 22:42
Crunshii
anyone got bengay!?
Coldbrand's Avatar - Comment posted on 10/30/2008 23:42
Coldbrand
Akathatoneguy you can get the AC/DC Disc on Walmart's Online store.
Chronic Logic's Avatar - Comment posted on 10/30/2008 23:46
Chronic Logic
So many pinkslips and yet so many employees.
Chronic Logic's Avatar - Comment posted on 10/30/2008 23:47
Chronic Logic
So many employees just for publishing games, srsly, what does EA do exactly that warrants so many underlings?
whormongr's Avatar - Comment posted on 10/31/2008 01:04
whormongr
I have a feeling it is prolly due to the whole DRM issue- spore should've been huge, but it wasn't- mainly due to DRM- I can personally say that in and amongst friends, I didn't know a single person that bought it purely due to the DRM and I myself was looking forward to owning it before the mass effect fiasco- I feel the same way about sims3, I really was looking forward to it- but not now.
Spore had to have lost them a ton- commercials were everywhere and there are at least here in the bay area a crapton of billboards and lcd screen ads up and down the freeways- if you put that much out in promo you really need to have the return in sales. If EA thinks that protecting their IP is worth the damage that it is doing to their reputation and company- that is their decision, but in my mind it is not a sound one.
ParaParaKing's Avatar - Comment posted on 10/31/2008 03:22
ParaParaKing
The loss of money isn't apparently because of the economy but EA spending too much money. If the revenues are up about 40%, that EA just spend a lot more money.

Now everybody quickly think about what would have happened, if EA took over Take Two earlier this year and spending a LOT of money in the process. That would certainly have resulted in a lot more jobs being lost.

Also on a different note: EA is evil.
Drach's Avatar - Comment posted on 10/31/2008 05:25
Drach
EA Was aware that they were going to take a loss when they attempted to buyout Take-Two. Why do you think they were so aggressive about it? I'm glad that didn't happen.

I enjoyed Dead Space. It was a solid game that had some neat gore and scary things in it. I've had a history with EA starting with BF1942. (They refused me any customer support for the software) to BF2142 (rampant cheating on the servers, people attempt to tell EA about the problem, it falls on deaf ears) To flooding the market with sub-par sports games (madden) that seem to get a "new" version every year... (you can't patch these games?!)
Fuck, EA it's simple math, stop putting so much loot in advertising. It's OK to see an ad once every so often for a new game but EVERY commercial break?! You've sunk your money into something that usually gets spread by word of mouth- If the game rocks, gamers tell each other, it sells well. If the game has flaws that are game breaking.. The gamers know, and they tell each other. no ad campaign will make those flaws go away.

Bah. EA Screws the pooch often don't they?!
John B's Avatar - Comment posted on 10/31/2008 07:31
John B
@akathatoneguy:

I do understand where you're coming from. I've been playing EA games since the Commodore 64 when they were one of the top 3 developers (with Activision and Epyx right next to them).

But lately they've been riding the coattails of their sports series year after year after year and they've taken a very, very negative trend towards their "customers" with their DRM and their rhetoric towards those who don't like their rhetoric. They just had another one where supposedly getting banned from the forums means getting banned from all EA games that require a login!

(I'll confess that I still have never and will never forgive them for what they did to Origin and Bullfrog, but that's another story.)

EA has gone from making brilliant software (Racing Destruction Set, Arctic Fox, Chuck Yeagar's Air Combat, etc.) to making shovelware ({enter sports title and current year here}) and displaying bad attitudes towards the public (draconian DRM). I feel badly for the people who have lost their jobs; but when management acts the way EA's management has been acting as of late you shouldn't be surprised at seeing some kind of a backlash against the company.
hicks's Avatar - Comment posted on 10/31/2008 08:29
hicks
KaL_YoshiKa: The 360 version of Dead Space has more DRM than the pc version. You have no knowledge of computers.

What I do not understand is why gamers stand back and allow for corporations to control all the games that we play. If you are really passionate about games, then why not learn to make your own? There is a whole group of gamers that are really good artists and it just takes some elbow grease to learn how to code.

If I've gotten to the intermediate level of programmer, then anyone can get further than me, seriously.
Tet's Avatar - Comment posted on 10/31/2008 08:37
Tet
DRM and such aside, when has the gaming industry been a stable career choice?
Holyetheline's Avatar - Comment posted on 10/31/2008 08:52
Holyetheline
Aw that's so sad.
whormongr's Avatar - Comment posted on 10/31/2008 08:53
whormongr
@hicks I haven't had the time to peruse the coding side of it as much as I would like- but I am always down for doing character/level design for indies or decent homebrew (most of them need some good designers)- I used to do character/level/packaging design for games waaay back in the day for a bunch of PC titles when all it took to have a "studio" was 4 or 5 guys with computers and not the million to billion dollar studios that have scared me from wanting to ever go back into the industry.
John B's Avatar - Comment posted on 10/31/2008 09:12
John B
@hicks:

Time and talent don't just appear because of desire. Many of us have families that need our attention as well; many of us have the logic to make a but not the creativity; many of us have the creativity to make a game but not the logic. Very, very few have the ability t mix all three effectively.

Believe me, I wish it was as easy as you make it seem. But if you think that people can just pick up a book, apply some elbow grease, and make a game, then you are sadly in need of a dose of reality. The cliché of "easier said than done" springs to mind.
Woocifer's Avatar - Comment posted on 10/31/2008 10:35
Woocifer
Odd this would come after such an active year for EA...maybe they shouldn't have gone shopping for all those devs and perhaps they could have kept the 600 or so employees...or...wait a minute? Could they have acquired nearly 600 employees through business acquisitions and are using their 'numbers' to mask the fact that this is an evil 'switcharoo' to rid themselves of the less useful staff to create new space for the newly acquired talent? hmmm?

As sad as this is(I lost my job over a year ago from another developer) for those that lost their jobs, this is better for the game community I would think as the more you pare down your team, the better the code base benefits as usually with too many hands comes too many issues and WAY too much production as they think their staff can pump out a tonne of crap for the masses to consume. It doesn't work that way.
akathatoneguy's Avatar - Comment posted on 10/31/2008 11:16
akathatoneguy
@ hicks-

I don't really see the connection. I like watching movies, and I have no interest in directing them myself. Same with games. The whole point of playing a game for me is to relax and enjoy a new experience. Designing or programming my own games would be the opposite of relaxing.
SilverDragon1979's Avatar - Comment posted on 10/31/2008 12:47
SilverDragon1979
@NihonTiger: LOL. I knew you would say something. I was going to stay out of this one, but since you brought my name into it I'll put my thoughts out there.

First of all there is still no proof that these layoffs are going to hurt the gaming industry. We have no idea who was laid off. Typically when companies have layoffs they take the oppurtunity to get rid of people they wanted to fire, or people that were in positions that just had no significance to the company. We have no proof that any good hard working people who really contributed were actually laid off.

That being said though am I absolutely NEVER happy to hear that any company out there at all laid people off. Taking a job away from a person, especially when the economy is in bad shape and there are not other jobs out there, is just a horrible thing to have happen to anyone. I'm just hoping that these people are still able to find some type of jobs and provide for their families.

Now if we start hearing about people who really contribute to the gamign insdustry start to get laid off, then I'll start to believe the reteric that the economy is hurting the gaming industry. The interesting thing is though that if a company like EA got rid of someone good, I would hope that other companies like Activision would be out there looking for these people trying to swallow them up. You could get really good labor for really low prices.
OhJAM's Avatar - Comment posted on 11/01/2008 17:22
OhJAM
I'm sure that net loss of $310M had nothing to do with overhyping and overmarketing a particular substandard sports simulation franchise's latest offering.

My condolences to those who deserve a job and now have none.
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