Electronic Arts cuts staff by 5 percent

By Curt Feldman, Tor Thorsen, GameSpotPosted Feb 1, 2006 3:43 pm PT

World's biggest publisher confirms major layoffs as more than 300 employees across three studios see pink.

Following initial reports in several game forums, game publisher Electronic Arts confirmed that it has laid off a sizeable number of its employees. An EA rep confirmed to GameSpot that the company is reducing its total workforce by 5 percent. Because the massive third-party publisher employs 6,500 to 7,000 people worldwide, that means between 325 and 350 people received their notice of termination today.

The spokesperson said that the reductions were made "due to the fact that we are in a transition [period]," adding that "every division is going through this resource evaluation." The rep said some employees affected by the layoff had been offered the option to relocate, though the rep was not sure of an exact number.

The EA spokesperson added that "during transition we always look to realign our resources, whether that's people, technology, or our investments. It's a time of focusing on our key priorities."

The rep added that the layoffs were done "so we have the most efficient alignment for all of our strategic priorities...it doesn't have to do with any one [game]." The rep added that the painful step was but "one piece of what the whole industry is going through."

Officially, the company started the process at its Redwood Shores headquarters. An employee at the facility who wished to remain anonymous told GameSpot that "a lot of people aren't here anymore." Additionally, informed sources said both Florida-based EA Tiburon and Vancouver-based EA Canada were also affected by the cuts today.

The layoffs come just one day before EA is scheduled to release earning figures for the third quarter of its 2006 fiscal year. The move also coincides with the completion or near-completion of one of its biggest calendar-year 2006 titles: The Godfather.

126 Comments

  • gamespotr0cks

    Posted Feb 19, 2006 7:14 pm PT

    If the laid-off employees were to come together and form their own company, then make an AWESOME game that made them millions...that would be sweet justice. It could happen, all it takes is drive and a lot of luck. btw, I bet the CEO will get a larger bonus now that he cuts out the extra fat.

  • Blazer88

    Posted Feb 15, 2006 9:02 am PT

    Boo to EA. Instead of laying of the people who actually do the work.The overpaid Executives should be the ones to get the boot or at least very large pay cuts to them.
    Thats the way it should be.

  • Hu_Long

    Posted Feb 5, 2006 7:07 am PT

    Nice to know that while EAs buisness has spread worldwide they still have a loveable coporate face of "if it isen't making us money, fire it, kill it and leave it for the bin men"

  • expertgamer3

    Posted Feb 3, 2006 4:47 pm PT

    oh. well. sucks for the 300 workers.

  • Kratos_Aurion56

    Posted Feb 3, 2006 4:30 pm PT

    They got on the wrong side of the Man.

  • XlpranksterlX

    Posted Feb 3, 2006 2:46 pm PT

    [This message was deleted at the request of a moderator or administrator]

  • XlpranksterlX

    Posted Feb 3, 2006 2:45 pm PT

    Its because idian people cant make games yet.

  • luludooobee111

    Posted Feb 3, 2006 2:10 pm PT

    [This message was deleted at the request of a moderator or administrator]

  • PerfectDark0Fan

    Posted Feb 3, 2006 11:37 am PT

    As much as I hate EA for using the name Goldeneye for money and the execlusive football licence; its sad to hear people lose their jobs. EA though would get more attention if they made better games. The only reason why though their in first place most years is because they publish and develope more games in a year then anyone else.

  • ForteX

    Posted Feb 3, 2006 11:08 am PT

    The rich getting richier, the employees getting screwed.
    Burn in hell EA CEOs

  • mps_

    Posted Feb 3, 2006 10:56 am PT

    Funnily enough didn't EA go on a mad recruitment drive in September particularly at the SIGGRAPH event? Did they not foresee that their games were sub par and receiving poor reviews? Oh wait, I guess they did see that and they chose to hire staff regardless. All about replacing Vets with grads and noobs saving $10k per salary at the least. If they can get rid of a few 'complainers' whilst they're at it all the better. They make poor games and this will not improve until they learn to keep the vets happy and make them love their Job again. There's more to life than money, and most game vet's joined up because they love games, but that passion dies when your get burnt out from overwork, hence the poor games that EA release.

    For those that got let go, I lost my job last year with a £5k payoff and got a better job within a week for £8k more p/a. Sometimes its a blessing in disguise. Keep your chin up and you'll be back fitter and stronger! It'll be like being released from a prison.

  • zymase

    Posted Feb 3, 2006 10:31 am PT

    Layoffs suck, I hope the talented developers, etc. find work at a good studio.

  • Plays_4_Pants

    Posted Feb 3, 2006 10:01 am PT

    Being in the business, i must say how happy i am that my company that i work for is not ea. They suck, they make bad games and they make me sick to my stomach. Haven't bought an ea game in 2 years and i haven't missed a thing. The video game industry has to grow up and treat their employers right...60-80 hours a week is cruel and stupid. I don't care how much we love our jobs...it's about the humanism and using "passion for games" as an excuse for mistreatment is wrong.

  • pengin21

    Posted Feb 3, 2006 9:26 am PT

    screw EA, this is what happens when your company doesn't pay you your overtime, you complain via class action lawsuit, they ask you to relocate and then they fire you. It was big news a few months back in GI.

  • MegaXtreme

    Posted Feb 3, 2006 7:16 am PT

    With games like Marvel Nemesis being half-heartingly made, and Burnout, in my opinion, sucks, and a mediocre Madden game, it's no surprise EA is slipping. The only thing I think they have going for them is the TimeSplitters series, which is still golden.

  • gdiza

    Posted Feb 3, 2006 1:16 am PT

    All I'm going to say is that I hope all the staff who lost there jobs find new jobs and are happier!
    Losing ones job is never a good thing... ever.

  • ewjim

    Posted Feb 2, 2006 11:43 pm PT

    I want NEW and ORIGINAL games!!!

  • Jeff_Blaze

    Posted Feb 2, 2006 11:00 pm PT

    Thats real messed up

  • Hellspite187

    Posted Feb 2, 2006 10:12 pm PT

    Well I only one thing to say about it.....it's typical of EA to either screw up a game and or people!

  • DGFreak

    Posted Feb 2, 2006 9:18 pm PT

    I can't imagine that they would ever risk outsourcing their development positions. Anyone remember a little developer by the name of Stellar Stone? Best stick with local talent.

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