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EA confirms 10 percent of staff laid off in major restructuring

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EA electronic arts logo
EA electronic arts logo

During video game conglomerate EA’s most recent earnings call, the company’s CFO confirmed that it has laid off the roughly 900 workers whose jobs were rumored to be on the chopping block last month. “Our cost reduction plans will reduce our overall headcount by approximately 10 percent,” said Blake Jorgensen, who also serves as vice president, before explaining that the restructuring plan and resignation of CEO John Riccitello cost the company an extra $15 million more than what it estimated in its most recent guidance.

He did not elaborate on which divisions would be hardest hit

Jorgensen went on to say that the company is working toward achieving a 20 percent operating margin, and that goal is what prompted the layoffs. He did not elaborate on which divisions would be hardest hit by the cuts, failing to confirm rumors that EA Partners, the company’s co-publishing arm responsible for third-party hits like Doublefine’s Brütal Legend, was being shuttered.

During the call, EA label president Frank Gibeau also spoke briefly on the company’s disastrous launch of SimCity, in which network failures left millions of owners unable to play their new game. The franchise’s creator Will Wright might think that the launch was “inexcusable,” but Gibeau insists the company has learned from its mistakes. “This will not happen again,” he said.