April 27, 2013
EA Confirms Yet Another Round Of Layoffs
redOrbit Staff & Wire Reports - Your Universe Online
Electronic Arts (EA) is reducing its workforce once again, officials from the Redwood City, California-based video game developer and publisher confirmed on Thursday.
“In recent weeks, EA has aligned all elements of its organizational structure behind priorities in new technologies and mobile,” the company said in a statement posted to its official website. “This has led to some difficult decisions to reduce the workforce in some locations.”
“We are extremely grateful for the contributions made by each of our employees — those that are leaving EA will be missed by their colleagues and friends,” they added. “These are hard but essential changes as we focus on delivering great games and showing players around the world why to spend their time with us.”
According to PCMag.com, EA did not release any details about which teams would be affected, nor did they reveal exactly how many employees would be losing their jobs. However, Kotaku´s Stephen Totilo said sources had told him as much as 10 percent of the company´s total workforce could now be out of a job.
The latest round of job cuts comes at a time when the Madden, Mass Effect, and The Sims publisher “adapts to the popularity of play on smartphones, tablet computers and online social networks,” reports the AFP news agency.
Earlier this month, EA reportedly laid off half of the workforce at their Montreal studio, and announced plans to shut down three Facebook games — The Sims Social, SimCity Social and Pet Society — would be going offline on June 14 of this year.
In March, chief executive John Riccitiello resigned and was replaced on an interim basis by former CEO and Chairman Larry Probst. Furthermore, last year the company´s PopCap division, which is responsible for social and mobile game development, laid off 50 out of 380 employees in its Seattle and Vancouver offices.
“EA has declined to confirm whether its Partners program has“¦ been shut down,” Totilo said. “The Partners program was used to sign top outside studios like Epic, Insomniac and Respawn to make games for EA. The former two made Bulletstorm and the forthcoming Fuse. Respawn, staffed by the people who made Call of Duty great, is at work on what is probably a new shooter and that will be shown at this year's E3 in June.”
“EA is among the longtime videogame industry companies striving to adapt to an industry being transformed by the popularity of free play on smartphones, tablet computers and online social networks,” AFP added. “While announcing Riccitiello's departure, EA warned investors that its earnings for the quarter could be slightly lower than estimates provided at the end of January. EA is to report its quarterly earnings on May 7.”