EA layoffs totaled 10 percent of staff

FIFA and Battlefield publisher expects to pay $16 million in severance costs related to layoffs; global staff now estimated at around 8,400.

The recent wave of layoffs at Electronic Arts totaled about 10 percent of global staff at the FIFA and Battlefield publisher, the company announced today.

EA CFO Blake Jorgensen confirmed the figure today during a post-earnings financial call. He said EA expects to recognize $16 million in severance expenses as a result of the cost reduction move.

The 10 percent global layoff figure was rumored last month.

At the end of 2012, EA employed around 9,370 people across the world. A ten percent staff reduction would mean the company's total headcount now stands at around 8,400 developers.

EA has yet to detail which teams were impacted and a company representative was not immediately available to comment.

Written By

Eddie Makuch is a news editor at GameSpot, and is a big UCONN athletics fan.

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Discussion

80 comments
Atombomb1981
Atombomb1981

1% from the executives would have helped better that the 10% they've chosen to let go. They seriously need to adopt a friendlier business model, as it stands things will get worse and worse, despite the good figures in sales.

Brotelho
Brotelho

The degrading quality of EA's games will only deteriorate even further with less staff.
Their games are becoming hollow with swarms of DLC tacked on to make money.

Less Game, more DLC is EA's new model. I refuse to buy any of their DLC's and since I've beat the Mass Effect Trilogy, there's nothing left to bring me back into their grasp.

IF YOU BUY AN EA GAME, DO NOT BUY THEIR DLC'S. IT'S A TRAP THAT WILL NEGATIVELY AFFECT THE GAMING INDUSTRY IN THE FUTURE!

Razor10000
Razor10000

they should fire the ones that make decisions at ea, those are the ones that are ruining franchises. fire the idiots at dice that ruined battlefield!

suhinho
suhinho

ughh 8400 more to go...

Banefire76
Banefire76

Just another 80% to go. If it was only 10% staffed, perhaps they would only have the developers needed to make games that were truly excellent insted of trying to go for homoginized IP's that were once unique but now look identical to each other going for mass market appeal which incidentally "hows that going for you EA?"

Man i'd love for all of the developers working for EA (not known to carry much job security as it is) to be creating small development teams themselves and making the games they truly want to make on kickstarter and the like. Let their real talents shine instead of slaving away on yearly cash-in updates designed to keep the executives raking in cash while the actual artists creating the content that makes them rich get shown the door after their work is done. It's a parasitic relationship instead of a symbiotic one.

Think about it EA employees, without you they would just be well dressed execs making nothing and earning nothing. So get out there, get organised and start up your kickstarters ;)

St0Ne4Ge
St0Ne4Ge

Do your bit for the industry, pirate an EA game today yarr

xeoneex66
xeoneex66

You know, this is like the story of how Icarus flew to close to the sun... he got burned.  EA trying to be something they should never be.  In existence... Burn baby BURN.

phatpantzz
phatpantzz

Well done EA Management - you have proved yet again how incompetent you are. If I were Disney, I would insist on a change of senior management so my money doesn't get wasted. These upcoming Star Wars games are not guaranteed to make money even if the new films do.

firehawk998
firehawk998

I have stopped buying EA games after ME3 and from the look of things will not buy any EA game in the future. While I am glad EA is taking a huge hit these days I am not happy that the staff got fired are the ones that most likely did not have to do anything with the idiotic management decisions. My wish now is that for the people who got fired to get new jobs immediately and the for the top management to get fired and be replaced by those that have common sense.

MrDouglas
MrDouglas

just out of curiosity, is that free-to-play Command and Conquer game using the Frostbite 2.0 engine still coming out, or has it been canned?

thorn3000
thorn3000

$16 million in severance costs, 4 of which go to the CEO...capitalism...

bloody-hell
bloody-hell

While they keep decimating the hard working developers and staff, the true shithead suits higher up in the ranks with all their stupid ideas they keep pushing will stay and even get a payrise and bonus payments - That's fine though, they'll keep sinking faster and faster that way until there's only executives left and no more develoeprs and then EA will disappear, finally, for the better of everything gaming related.

Don't worry, laid off employees, competent personnel will always find a job. (sadly though, empty, bullshit talking business suit itiots do too)

Though I doubt that the article really means to say 8400 developers, but rather 8400 employees.

commanderxp90
commanderxp90

OMG...  EA you already wasted your time and re-hire others.  -_-

Scorchstar
Scorchstar

Less people to work on Star Wars games now :(

Dalkanium
Dalkanium

EA has shut down their HQ in Portugal this month.

farcorners
farcorners

No-one should dance at people losing their livelihoods, even if temporary, even if from a arrogant master.

Chaloner11
Chaloner11

Valve should buy EA. Imagine  Battlefield made by Valve.

berserker66666
berserker66666

Still wondering why EA was voted worst company in america? Twice?

berserker66666
berserker66666

YES. Thank you. EA fuck off and take your stinking pile of shit you call games with you.

chadwick1343
chadwick1343

Wow. Something needs to change, and quick!

Anutha_One
Anutha_One

I wonder what the numbers were for the staff they laid off? That is, staff vs. management vs. executive management. So many American companies are getting top heavy and when they don't meet financial expectations, who do they eliminate but the bottom end.

Even if you don't like EA, remember, most of their decision making is being made at the top and "those" people probably kept their job through all this.

sasami_adachi
sasami_adachi

I wonder how many of that 10% were high ranking officers? =/

keysnsamples
keysnsamples

And this is the company that will be making are Star Wars games..

S0loMANgrundy
S0loMANgrundy

thank god those people dont have to work at ea anymore

shanoobergloobe
shanoobergloobe

why fire the staff....fire and replace all head positions.....these people are the ones destroying EA... NOT the common man

gplayer5
gplayer5

I feel bad for the people who lost their jobs, but a company like EA has to go.

nurnberg
nurnberg

I don't expect any layoff in the teams working on Battlefield games.

Zoza24
Zoza24

I hope Activision will follow suit as well.

Fuck those 2 publishers douchebags.

Banefire76
Banefire76

@St0Ne4Ge Much better (and with the moral and legal highground) Dont buy/play EA titles at all. I'ts not like they make the best/essential games out there is it?

Brotelho
Brotelho

@firehawk998  

Also, avoid all EA DLC at all cost. If you do buy a EA game, don't buy their DLC.

Dalkanium
Dalkanium

@MrDouglas  The trailer of that game has gameplay on it so its definitely coming out.

cuddlyfuzzle
cuddlyfuzzle

@farcorners yep. this is the one place, I read on the net, with so many uninformed, juvenile, self-absorbed comments posted from kids who've never even been employed. sort of depressing really.

duderdave
duderdave

They already have that - it's called Team Fortress 2/Counter Strike Yada Yada.

Valve is incapable of making a Battlefield game. Valve games are like cheap chewing gum - chew the stick a little, spit it out, get another, repeat ad nauseum with the only result being that before you know it you just went through 5 packs of cheap chewing gum for nothing.

MoronGotMyName
MoronGotMyName

@Chaloner11 Um, then why doesn't Valve just create a superior Battlefield without buying EA then, like the Battlefield IP has anything special worth paying for. Also, the game would be released in 2018.

commanderxp90
commanderxp90

@awhite33 Yeah, EA have many idiots to work for EA.  EA smell a huge money in the market.

MoronGotMyName
MoronGotMyName

@berserker66666  EA is just upholding an old tradition: "A cohort selected for punishment by decimation was divided into groups of ten; each group drew lots  and the soldier on whom the lot fell was executed by his nine comrades, often by stoning or clubbing. The remaining soldiers were often given rations of barley instead of wheat."

Shanks_D_Chop
Shanks_D_Chop

@awhite33 But surely by closing shop even MORE hard working people lose jobs? In an uncertain economic situation, that ain't good.

EA, as a company, instead needs to rethink it's business model, it's priorities... Oh shit, did anyone else see that pig go flying past the window? No? I must be imagining it...

arc_salvo
arc_salvo

@S0loMANgrundy Actually, I hate to say it but I think you're right.  Whatever the people who lost their jobs will do next, at least they won't be working at EA.  So they can do whatever they're going to do with more pride.

thorn3000
thorn3000

@shanoobergloobe precisely my point my good man...precisely my point...problem is, that is not how capitalism works, CEO took all the blame and a golden boot, the other execs which have at least as much fault on their hands as he, continue running the company...and ordinary people who most likely worked their butts off are being made redundant...

KumaTenshi29
KumaTenshi29

@MoronGotMyName @berserker66666 Combination of ethics in how they treat their customers and their employees, work conditions, labor violations, the general buying out of other companies and then slamming them shut, ruining various gaming IPs, introducing nickel and diming methods, AODRM, on and on and on

Shanks_D_Chop
Shanks_D_Chop

@awhite33 @Shanks_D_Chop Time will tell but I wouldn't be surprised if any changes that EA does decide to implement will be done so over such a long time period that they'll fail critically before any initiatives bear fruit.