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Restructuring, layoffs forthcoming at EA, Mythic Studios
by Aaron Linde on 10.24.2007 35 comments

Restructuring, layoffs forthcoming at EA, Mythic Studios screenshot

Owing to sagging profits and and a less-than-firm grip on their once invulnerable spot at top of the third party heap, Electronic Arts is looking to make some changes in their corporate structure, starting with Mythic and their Redwood Shores studio. An internal email from a trustworthy source who wishes to remain anonymous reveals that John Riccitiello, CEO of Electronic Arts, has tasked every studio and company within the monolithic publisher with getting their rising costs in line with revenue, which in plain English means layoffs.

The email from Mythic VP Rob Denton was sent to all employees of Mythic and details some of the plans to reduce costs by cutting jobs as well as some actions already taken. Headcount will be managed through "attrition, performance management, stricter hiring guidelines and layoffs". Over the next two months, the Ultima Online team will be moving from EA Redwood Shores to Mythic's Fairfax, VA studio to streamline operations. Meanwhile, a number of employees at both studios have already been let go as of earlier today including many UO staffers, with more to follow as EA tightens its belt in the coming months.

While this is the first we've heard directly of the layoffs, increasing efficiency and lowering costs in the face of falling profit margins and flat revenue can't be achieved by just two of over 20 studios. While we were asked not to print the email in its entirety, one direct quote from the email we can show you is the following:

Given this, John Riccitiello, our CEO, has tasked the company to get its costs in line with revenues ... Every studio, group and division of the company has been tasked to review its overall headcount and adjust its organization to meet the needs of the business moving forward.

Such an order coming from the top likely means some far-reaching consequences within the company. Destructoid will keep you posted on any further updates.

MORE IN OUR Industry Bullshit SECTION

Latest comment by kardelen1334 |view all 35 comments
--------- ......





brainderailment's Avatar
brainderailment at 10/24/2007 21:55

As long as their games don't get any worse, then this isn't news to me, but kudos for the big story.
BS3 Owner's Avatar
BS3 Owner at 10/24/2007 21:58

That's alot of people for that one outfit!
Aaron Linde's Avatar
Aaron Linde at 10/24/2007 22:02

That's Redwood Shores, yo.
xmetninjax's Avatar
xmetninjax at 10/24/2007 22:05

Yup, get into the gaming industry if you enjoy 80 hour work weeks, because if they can lay off unneeded employees, trust me, it's to overwork the ones they keep. I've had stories told to me from people working in the gaming industry here in Montreal, and it has turned me off forever. I feel sorrier for the ones they keep, it's slave labor.
Flub's Avatar
Flub at 10/24/2007 22:32

Nobody likes downsizing.
Velt's Avatar
Velt at 10/24/2007 23:21

Is a complicated business... but at the end of the day thats what it is, a business.
Epitaph's Avatar
Epitaph at 10/24/2007 23:44

Don't know about the situation on big compaies like EA, but I work at a small south american studio and it's not that bad. Sure, sometimes you have to work more hours than expected, but the work itself is pretty cool, as the people you meet aswell.
gamerzworld's Avatar
gamerzworld at 10/24/2007 23:47

Prepare for even more shit-tacular games from EA!
xmetninjax's Avatar
xmetninjax at 10/24/2007 23:56

@ Epitaph

I believe you, I also believe that Bioware was reported one of the top companies to work for here in Canada (yet to be seen if it holds true after the recent acquisition). But when it comes to the major publishers like EA and Ubisoft, the employees I've spoken with or known have some major resentment in terms of their treatment and the pressure to work 16 hour days during crunch time, which, due to the development strategies set in place by these companies, seems to be pretty much all the time.
Necros's Avatar
Necros at 10/25/2007 00:07

Bah, they're probably laying off and rehiring people without any announcement all the time. It's the only way they can keep from killing the people they overwork on games.
morbo47's Avatar
morbo47 at 10/25/2007 00:10

I can never understand how stories like this can always be found around stories like them buying Bioware. Couldn`t they save a few hundred people`s jobs and just alter the WAY they make games instead? Or like... NOT waste millions on a company that they're just going to drive down the crapper?

Last week Bioware employees knew they were working with one of the top 10 companies in the country, and now they only have the day a memo like this gets passed around the office. Awesome.

Maybe I DON'T want to send them my resume anymore
Feigro's Avatar
Feigro at 10/25/2007 00:15

Yea, that's the thing that gets me. Why make such a substantial purchase if you're in the position where you need to "reorganize" due to cost and revenue issues?
Rosnet's Avatar
Rosnet at 10/25/2007 00:19

ex-employee lays it all out
Goodbye UO
gamesronlygames's Avatar
gamesronlygames at 10/25/2007 00:27

theyve gotta pay moore's salary no matter what
ruckus's Avatar
ruckus at 10/25/2007 00:35

noooo! I have high hopes for mythic's warhammer online...I knew this EA acquisition crap was gonna be...well...crap!
Boolean's Avatar
Boolean at 10/25/2007 00:36

On one hand layoffs and budget tightening at Mythic could be bad, but if they are moving the Ultima Online team into Mythic, that could be good. Point is, I just hope EA don't start fucking up the development of Warhammer Online just because their generic shitty rehashed titles aren’t selling well and they need to save money.
xmetninjax's Avatar
xmetninjax at 10/25/2007 00:46

But they are selling well, so I don't get it.
Volomon's Avatar
Volomon at 10/25/2007 01:26

I knew they were going to screw Mythic it was just a matter of time.
Farktoid's Avatar
Farktoid at 10/25/2007 01:33

What a marvelous scheme they have going there at EA. Fire the low-level programmers and level designers who make around 60-70K a year while keeping on the executive scum who make triple, quadruple, or even ten times that, and those clowns do absolutely nothing for the company or for the products it releases aside from axing the Cleverness Division.

Damn, it must be nice to live in Upper Management™. I hope to live there some day.
Spykron's Avatar
Spykron at 10/25/2007 01:44

Hang in there mythic. HOLD THE LIIIINE!
chronicus_prime's Avatar
chronicus_prime at 10/25/2007 01:54

Bunch of heartless cocksuckers. Bioware's next. :(
slapme7times's Avatar
slapme7times at 10/25/2007 01:55

lol... i can feel the prickle of terror that must be weighing down upon EA employees right now.

plz don't fire me!
9to5's Avatar
9to5 at 10/25/2007 05:03

From a top secret internal EA memo; "We could layoff some staff, that would increase profits, however, according to their contracts we actually own the souls of our staff so sending them straight to hell as punishment would be more suitable."
CaffeinePowered's Avatar
CaffeinePowered at 10/25/2007 07:33

You know everyone in that picture is just thinking 'dear god why do I work here'
Holyetheline's Avatar
Holyetheline at 10/25/2007 09:03

Goodbye to job security.
Rozes's Avatar
Rozes at 10/25/2007 09:32

EA reminds me more and more of SOE every day. "Hey this looks like a cool game to buy and ruin."
king3vbo's Avatar
king3vbo at 10/25/2007 10:03

/second Rozes
bayushi's Avatar
bayushi at 10/25/2007 11:49

Layoffs and yet they have millions in $ to acquire pandemic/bioware.
Um, what???
KGETZ3's Avatar
KGETZ3 at 10/25/2007 13:14

This is going to be the quote in a couple of years.....

"Given this, John Riccitiello, our CEO, has tasked Bioware to get its costs in line with revenues ... Bioware has been tasked to review its overall headcount and adjust its organization to meet the needs of the business moving forward."



:'(
Promagnum's Avatar
Promagnum at 10/25/2007 13:40

The one company I wish had a bunch of disgruntled employees comeback and torch the place...
LarkOhiya's Avatar
LarkOhiya at 10/25/2007 19:58

too bad I don't work at ea so i can be fired from them later... too bad.
Lightthrower's Avatar
Lightthrower at 10/25/2007 21:14

From Tom Buscaglia:

"A few years back at GDC I was sitting in the bar at the Argent Hotel with a few industry HR people from a few of the "good guy" studios. They uniformly held the opinion that they did not like to risk hiring former employees of EA. They all felt that these folks were "damaged goods" and the risk of taking on their rehabilitation was too great.

This seemed a bit extreme to me., But their experience was that as high as 80% for these folks were too screwed up to make good employees in an environment where talent is gently nurtured buy senior people. Because if they could not be trained the lost productivity of both the leads and the new employee was too great. So, why risk it! One even said they just don't even interview former EA entry level employees due to the risk factor."

They won't even have the chance to get an easy new job.
Vyrquenox's Avatar
Vyrquenox at 10/30/2007 08:02

EA has more money in it than bush has oil money, and I'm a republican who likes the guy. They aren't trying to fix anything, they are literally overrun by executives who are trying to consolodize their personal assets. Look at it. There is no shortage of profit, and they know it. They are molesting adopted children, that is what is going on. Sue me, dear people, you embarass me.
fantasy's Avatar
fantasy at 05/03/2008 23:05

This site is interesting and very informative, nicely interface. Enjoyed browsing through the site.

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