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EA planning 'small' staff cuts

Megapublisher confirms "routine" companywide cutbacks following completion of holiday lineup.

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Late Wednesday, word began to circulate through back channels that staff cuts were in the offing at EA Mythic, the developer of the forthcoming massively multiplayer online game Warhammer Online. According to an internal e-mail leaked to game enthusiast site Destructoid, Electronic Arts CEO John Riccitiello has notified the heads of all the megapublisher's internal studios to tell them to cut costs--and, by implication, staff.

"Our CEO has tasked the company to get its costs in line with revenues," read the e-mail, which reportedly was sent to all of EA Mythic by studio vice president Rob Denton. "Every studio, group and division of the company has been tasked to review its overall headcount and adjust its organization to meet the needs of the business moving forward."

Jeff Brown, vice president of corporate communications at EA, confirmed to GameSpot that some staff cuts were in the offing companywide, but downplayed their significance. "This was a small and somewhat routine event for this time of year when many of our titles are finished and being shipped," he said. "The action included small numbers of people across studio, publishing and corporate divisions."

Speaking on condition of anonymity, sources inside the EA studio structure also confirmed there were cuts being discussed. However, they also echoed Brown's comments that the changes were not major. "It doesn't seem to be that bad...yet," said one, indicating the cuts had come in mainly administrative and publicity positions.

EA's move comes in the wake of its $860 million purchase of superstudio BioWare/Pandemic, where Riccitiello was briefly CEO. Prior to the purchase, the company had nearly 8,000 employees in more than a half-dozen countries.

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master_blue

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Maybe EA will realise it cant just splash out 860 mill on company purchases, staff layoffs across the boards arnt going to help its reputation either. UO got pretty badly hit apprently too which sucks.

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killeryoda85

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business is business. doesnt mean anything

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spraynard

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its business. has happened to me before. busy time = lotsa help. when times slow down = get the ax.

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shinitoman007

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Wow, so I'm guessing noone here has ever worked for a major video game label. Most of these cuts are probably going to be the part-time QA testers (even if the letter says otherwise). Companies can't keep 300 people around when there's only 3-4 games to work on. And those that are being let go more than likely have 6 month contracts that are expiring or have already expired. Everyone's so quick to jump the gun when they have to f'ing idea how the system works. It's not like EA is only company that does this. What we should be complaining about, is how executives (coughpetermoorecough) get paid 300k just in moving expense, and then is given a crap-ton of shares just to be a talking head.

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draknareb

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Buh-bye Bioware :( It may not happen quick in the future but it will happen...EA is notorious for bringing the axe to companies it acquires. Here's a thought EA instead of firing people how about CUTTING BACK ON YOUR FAT-CAT ADMINISTRATIVE OVERPAID SALARIES & BONUSES. This is a typical greedy corporate **** move. Instead of restructuring people to alternative projects, lets just fire em.

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N8A

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sucks to have people lose jobs, but it would be nice if they released a worthwhile game instead of their usual garbage.

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Gruug

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They only are letting go "administrative and publicity positions". To bad they don't fire their entire Quality Assurance group along with all their accountants. Would be a step in the right direction to fix what is broke at EA.

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TongLong

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I guess this is proof that EA isn't really DEVELOPING anything new, just updating rosters from year to year, or adding new ads for Axe Body Spray to updates of old games...

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chewygun

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is this why some of their games suck? because theyre cutting all their staff loose?

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harhuge

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You'd think a company such as EA would have systems in place to transfer employs who just completed one project, to one that is just beginning. It's called planning and it seems that EA is either severely lacking in that regard, or they really do not have any respect for their employees.

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Megawizard

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I figured something like this would happen after they sank that money into the purchase. Alternatively, if they think they can cut back on staff because their new MMO is almost done, wow are they going to get a shock on release.

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ZOnikJJ

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Staff cuts are always sad to hear.... oh well.

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oroeovo

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Best way to celebrate some victories is by firing someone for Christmas!!! I will definitely do my best to avoid purchasing any of their games.

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deactivated-58fbfc61e27fe

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Isn't Greg K working in EA now?

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deactivated-58fbfc61e27fe

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[This message was deleted at the request of the original poster]

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diablobasher

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EA is well known for mis-treating employees, it's seen several court cases regarding it, as have several other well known publishers. Activision i think, were involved in a scandal to do with not paying overtime, while forcing employees to work overtime close to deadlines. I 'think' it was activision, may have been someone else but that name springs to mind. EA have also faced similar accusations.

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realitysux21

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whoever got fired should go to bungie one of the last independent developers that r still there

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Montrealien

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Kids and Business dont mix. The EA comments that are about to flood this news will be proof of this...

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bernieberry

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Not suprising their are staff cuts all over this time of year. Too bad so close to Christmas.

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Symphony_Six

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Hey! We thank you all for finishing this holidays lineup, but if youll please look to your left, youll find the door. EA can do whatever it wants. they control so much of the third party publishing these days, that no one can stop them.

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ReckHavoc

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So they buy out Bioware and Pandemic for close to a billion dollars.. then they have the nerve to fire people? Oh how I hate EA.

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mopeyking

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Hate you EA!!! No wonder all your games are mediocre, you supposedly treat your employees badly, you try to save money by firing people even though you make millions !!!! enough to buy a great company such as bioware known to be one of the best places to work at in north America...doubt it will be like that for very long.....how are you ever going to make great games if your employees despise you ???

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DemannameD

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Every one that thinks this is unfair.... Do you understand how Business Works? You can't employ people to work on a game they have already finished. Thats not to say that in six months from now after the games are released and development begins on sequels or new IPs that the people released get hired back.... And do you think any of them are working on minimum wage or under the impression that once they're finished with a game that they will still have a job? Thats Why after a game gets released the developer starts posting job listening. Its just how it works.

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DeltaSpirit

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Hopefully those 8k where the ones responsible for some of the horrible quality in (some) games

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joeyfine

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we're all just cogs in the great corporate machine :(

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ElvenArcher

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EA is absolutely the worst thing to happen to video games in every aspect.

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snakes2solid

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people making these decisions should be fired!!!.. obviously it's to save money but right before the holidays??... wow..nice Christmas thanks to the people making you rich EA!!!!

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Erebus

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Mythic released an amazing game back in 2001. Why, WHY did they succumb to EA?

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KamuiFei

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So, EA buys BioWare, then cuts jobs?.... Well, nothing says "Welcome to the Team!" more than "We have to let you go..."

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SCboy79S

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Hmm... interesting.

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LexLas

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Well Happy Thanksgiving to you all ! That's messed up. What a christmas they will have. It's messed up that companies have to do this.

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airbus_a340_86

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"This was a small and somewhat routine event for this time of year when many of our titles are finished and being shipped," so people that work on the games are routinely fired after its finished and shipped?? can someone explain?

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iliyun

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yah oh well. sad times for them. i can care less. just give me some good *Quality* games E.A.

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SmoothCrimen

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hope they cut the non-profitable ppl and no the great minds behind great games, that usually happens...

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