EA to lay off 1000 workers and close some studios.


#1

Another morning another bad news… :frowning:

http://kotaku.com/5114113/ea-reducing-work-force-by-1000-closing-9-locations

EA has revealed further details on its restructuring plans, which will see the publisher cutting approximately 1,000 jobs and closing or consolidation of nine studio and publishing locations, including Black Box Studio.

The workforce reduction portion of the program is actually an extension on the 6% reduction announced back in October, increasing it to a 10% reduction. Terminations of the 1,000 employees is expected to be completed by March 31st, 2009. On top of the terminations, nine studio and publishing locations will be either closed or consolidated with other facilities, with Black Box Studio in Vancouver, British Columbia being merged with the EA studio in Burnaby, BC.

Along with narrowing their games portfolio, these measures are expected to save the company $120 million annually, while costing them $55-65 million in restructuring charges over the next few quarters.

Not good news for employees, but I suppose it beats coming to work to find you’ve been locked out.

EA Releases Details on Previously Announced Reduction of Facilities and Work Force

REDWOOD CITY, Calif.—(BUSINESS WIRE)—Electronic Arts Inc. (NASDAQ:ERTS) today announced further details on a restructuring plan which will include consolidating facilities and reducing the work force.

EA expects the restructuring plan will result in annual cost savings of approximately $120 million and restructuring charges of approximately $55-65 million over the next several quarters.

The plan is intended to reduce EA’s worldwide work force by approximately 10 percent or 1,000 people. The majority of these actions will be completed by March 31, 2009. This represents a four percent increase from the six percent reduction EA announced on October 30, 2008.

The restructuring also calls for consolidation or closure of at least nine studio and publishing locations. Among the facilities to be consolidated is the Black Box Studio facility in Vancouver, British Columbia. The Black Box development teams and associated game franchises will move to the nearby EA studio location in Burnaby, British Columbia.

EA is 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.

This is terrible terrible news. I feel for the blackbox people because their studio was one of the best locations in Vancouver, it will be sad to see it closed down and moved to burnaby. Its not even 2009 yet and it looks like things are going to get a lot worse before it gets any better. :frowning:


#2

That is sad news, I hate to see that anyone has to lose their job period…


#3

Sheep, be careful man, I know you want to keep people informed and I thank you, but this might cause a spurt of depression for you keeping us updated with this stuff. Stay positive.

As for the layoffs, again, and i’m getting sad saying this, I wish the best of luck to all those affected!!!


#4

wow this is getting insane. didn’t they just let 600 people go. sorry to hear, hopefully those let go will be able to recoup quickly.


#5

It already did :frowning:

I dread looking at news sites every morning now.


#6

Sheep, be careful man, I know you want to keep people informed and I thank you, but this might cause a spurt of depression for you keeping us updated with this stuff. Stay positive.

I agree, although this is reality. Turn on TV, news suck as well. This is no exception…you can’t stay positive in this situation. Gotta stay real.

Although I’m pretty sure EA and other companies are trying hard to keep h their employees…I think they should try harder. This year has to be a MASSIVE sacrifice, specially for big companies like EA, they still make a lot of money compared to other companies.

As always company first, employee second :hmm:


#7

Reducing your opex won’t help much if you are navigating through contracting markets, this will be a hard lesson for the shareholder-value suits that are used to juggle with the shortterm tactics between fiscal years, in expanding markets by corporation culture that was used to not consider anything except their own survival / profits. By laying off your workbase, while the outlook says that not only your markets, but also all the others, are going to contract badly, you just exterminate valuable purchasing power while installing an ambience of fear and insecurity, that reaches far beyond your workforce, but also on their social network, exactly what is not needed in such a climate… remember the sociological idea of six degrees of seperation. When there is one thing that this mess of a crisis should have teached anyone, than that corporations need to work together with each other and the goverment to get us through this mess, the old mindless solutions of cutting costs and holding out, while praying for the upswing are not going to work anymore. From a psychological viewpoint just a single laid off person influences the mindset of his whole social network and this is what it is all about, you want to get spending to work against that deflation, before it turns into that ugly hyperinflation…


#8

As far as I understand it, this is the same group.
So the 600 people have become 1000 people.
So it is not 600 + 1000.

Reducing by 10% isn’t as bad as it may sound for such a large company. Still sucks for those loosing their jobs though.

From what I have heard and read, world-wide game sales haven’t really dropped, so perhaps this is more related to under-performing titles from EA then it is related to recession problems in the games industry. I could be wrong though.


#9

As XminusOne said stay positive.


#10

The 600 announced before are included in this. The new total for layoffs is 1000.


#11

Jesus, is there no end in sight.

This is depressing news, but still its something I liked to know about regardless

Thoughts and prayers to all of those unemployed


#12

Maybe I’ll just throw myself in front of a train.


#13

don’t bank on it!..train services are being cut too…you might have to wait a while!
seriously though…this is just the start…wait till mid jan when the ‘s’ hits the ‘fan’

if you can ride out 2009 you’ll be set for the good times coming back in 2010 or 2011.

though this ‘downturn’ aka deep resession is going to make everyone think more about saving and less about ‘credit’

a good thing long term i reckon.


#14

No it wont make people and corps think differently about credit they are just sitting like some bizarre game console players waiting for their governments to hit the "restart " button so they can get right back on that enslaving carnival ride
of phony manufactured ,imaginary money that only exists in the databases of the bloodsucking predators known as BANKS!


#15

yeah…i can dream though eh!

i stopped having credit card debt balances and bank loans back in 1999…best thing i ever did i think.


#16

BTW there are also plenty of studios who arent closing down that are actualy look to hire people!

Perhaps try and stay positive guys :smiley:


#17

I think many companies in all industries are using this so called “crisis” to tighten their belts, we have come off many years of high growth and I imagine many companies are a little bloated so its an easy time to restructure a bit and just blame this whole financial crisis.


#18

though this ‘downturn’ aka deep resession is going to make everyone think more about saving and less about ‘credit’

i wish it was so. i know for a fact that whenever things go back to a normal state the cycle will just start over again. the thought that people will learn from whats going on is just wishful thinking.


#19

Crikey, first Sony now EA. Sorry to hear people are going to loose their jobs. If any are reading this thread then I wish them a brighter future with new employment.


#20

Yeah exactly!
Dont forget that the big news corps are founded on being sensational and making you think and feel that the only reason you are not dead is because you are watching them…remember they rely on having a crisis to report to make you tune in, they’re running a business too (not undermining news or saying we should all switch off but its not good to get sucked into their fear mongering)

There is plenty of good news out there, but the “in thing” to do right now is talk about how terrible things are…and as soon as you start focusing on the negative, thats all you’ll see.

Maybe those who are laid off will not being able to buy so many things, will have to budget during the uncertain times. But they will have extra time on their hands, perhaps they can now make that website they’ve always wanted to do, get back into drawing, learn how to print t-shirts, read the backlog of books they have, start the project they’ve always wanted to do, spend time with the kids, play sport, go for long walks etc…things that cost little to no money.
Of course its worrying to not have a job, and i feel for those in that position, but there is a brighter side too, and i think holding on to and maximising the bright side is the best way to deal with this change…
its just a change not the end.