EA to axe 1500 jobs
Publisher to reduce headcount, close facilities and trim portfolio of releases
Electronic Arts has said that is intends to axe 1500 jobs by the end of March 2010 as part of a new cost reduction plan.
The publisher will narrow its product portfolio and concentrate efforts on titles with "higher margin opportunities". Although the company has yet to reveal specific details, layoffs have already begun at some locations, with the company expected to close "several" studios.
"This action will result in the closure of several facilities and a headcount reduction of approximately 1500 positions, of which 1300 are included in a restructuring plan.
"This plan will result in annual cost savings of at least $100 million and restructuring charges of $130 to $150 million," detailed the company.
The publisher added: "EA remains committed to delivering high quality games for consumers and leading the industry in the growing digital direct gaming sector."
As an indication of the changing business, Electronic Arts confirmed the acquisition of social games specialist Playfish for USD 300 million earlier today.
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