EA Confirms 10% Staff Reductions During Investor Call

Electronic Arts has officially confirmed rumors which have been widely circulated for over week: 10 percent of the publisher’s workforce was let go during last week’s massive layoffs. The news came as part of an otherwise upbeat earnings report, serving as an important contrast between the riches reaped by major developers and the all-too-expendable workers who help make those riches possible,

The confirmation of number of employees made redundant was slipped into today’s quarterly earnings report investor call, during a discussion of first quarter expenses. EA confirmed it has paid out approximately $25 million in severance payments as a result of these layoffs. The specific divisions affected by the restructuring were not named, but rumors last week consistently mentioned employees at EA’s Galway, Ireland call center and EA India, as well as Popcap, EA Partners and Quicklime Games.

During the call it was suggested (though not stated outright) that the restructuring was part of Electronic Arts’ efforts to acquire the exclusive license to produce Star Wars games from Disney, a deal finalized and announced yesterday. If so, it calls attention to the expense of acquiring the Star Wars licenses. EA has not disclosed how much it has pledged to disney, either up front of through residuals, for the rights to make new Star Wars IP, but presumably the expense must be huge to warrant the elimination of 900 positions within the company (based on the company’s approximately 9,000 employees in 2012).

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3 Comments on EA Confirms 10% Staff Reductions During Investor Call

lol

On May 8, 2013 at 4:24 am

Who cares? Obviously they weren’t pulling their weight if they’re fired by one of the most successful entities on the planet. EA isn’t a charity, it needs to stop spoonfeeding entitled employees and entitled fans. Let them slackers live on welfare, as long as I get to keep playing awesome games like Mass Effect and use Origin then I’m fine. The small minority that disagrees with me have an average age of 11.

quicktooth

On May 8, 2013 at 11:17 pm

@lol – you’re… getting awkward lol. It’s not the trolling on any one article, it’s that you JUST KEEP TALKING. It’s not angering, it’s just kind of sad. Maybe if you gave up the pretense of having a point, and just kept your insane hate? I’d sort of feel easier about thinking you were insane. Because this is some kind of personality disorder. Help is never far away.