Electronic Arts Inc. plans to slash hundreds of jobs in addition to the layoffs it announced earlier this fall, with the total amounting to about 10 percent of its work force, or about 1,000 people.
The company, which had said in October it plans to reduce its work force by 6 percent — or about 500 or 600 people — said Friday it will close at least nine studio and publishing locations.
EA, whose games include the "Madden" football franchise and "Rock Band," had warned last week that its fiscal 2009 profit and sales will miss its earlier outlook because of weak holiday sales. The company said at the time it is planning further job cuts, but did not give a number.
The job cuts and restructuring will save EA about $120 million a year, and will lead to charges of about $55 million to $65 million over the next several quarters, the company said. Most of the layoffs will take place by the end of March.
EA, whose holiday lineup of games was not as good as hoped, plans to narrow is product portfolio to focus on hit games with higher profit margins. At the same time, the company said it "remains committed" to taking creative risks and investing in new games.
Among the facilities EA is closing is the Black Box Studio in Vancouver, Canada. The studio's development teams and game franchises will move to a nearby EA studio. The studio developed the racing game "Need for Speed Undercover," which has not done very well over the holidays, according to analysts.
Shares rose 59 cents, or 3.5 percent, to $17.35 in morning trading. EA's shares are down nearly 72 percent year-to-date.
Electronic Arts to slash 1,000 jobs
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Electronic Arts Inc. plans to slash hundreds of jobs in addition to the layoffs it announced earlier this fall, with the total amounting to about 10 percent of its work force, or about 1,000 people.
/ Source: The Associated Press
