Connect with world renowned investors

14 - 16 April 2021

Join the event

EA reveals fiscal detail of cost-savings plan

$120 million annual savings versus $55-65 million in restructuring

Electronic Arts has outlined more details regarding its financial savings plan, first announced earlier this month, noting that although restructuring will cost around USD 55-65 million over the next few quarters, the company stands to save USD 120 million annually as a result.

Around 1000 people will leave EA, the majority by the end of March 2009, a move that will cost around USD 30-35 million, while nine studios will be consolidated or closed.

Among those to be shut will be the Black Box Studio in Vancouver, with that team moving to nearby Burnaby. Location-based costs are expected to reach USD 23-28 million, with other asset impairment charges totalling approximately USD 2 million.

"EA is implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities," read a statement. "The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers."

EA's share price closed up on Friday by 3.76 per cent at USD 17.39.

Connect with world renowned investors

14 - 16 April 2021

Join the event

More stories

EA will soon release new technology to tackle racism and toxicity in FIFA 21

Publisher has banned over 9,000 accounts and issues over 25,000 warnings or suspensions since October launch

By James Batchelor

EA College Football reportedly won't launch until 2023

Internal document sent to schools by licensing group puts a date on EA's return to college sports

By Eric Van Allen

Latest comments

Sign in to contribute

Need an account? Register now.