EA to layoff 10% of their workforce?


Electronic Arts is having a tough time right now and for the second time in a month we have got reports that the company may lay off some employees from their office. This news was first reported by Kotaku and later on, the EA officially confirmed these reports. Although the news from Kotaku claimed that EA will lay off around 10% of their workforce which comes to around 900 employees, the company has not yet provided any stats or figures as to how many employees will they be actually laying off.

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Yesterday evening, the company released an official announcement confirming its plans to lay off some of its employees, yet the statement gave no details of the offices from where these layoffs would come from. The official statement from the company is as given below:

“In recent weeks, EA has aligned all elements of its organizational structure behind priorities in new technologies and mobile.  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.

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.“

Just a few hours later, Kotaku posted a memo sent from the interim CEO to their employees. Here is an excerpt from the memo,

“In recent weeks, the executive team has been tasked with evaluating every area of our business to establish a clear set of priorities, and a more efficient organizational structure. This process has led to some difficult decisions about the number of people and locations needed to achieve our goals.

The workforce reductions which we communicated in the last two weeks represent the majority of our planned personnel actions. We are extremely grateful for the contributions made by each of these individuals – they will be missed by their colleagues and friends at EA.”

Things are not looking good for the company with its CEO resigning after the company’s weak financial results last year. Now, the company is headed by the EA veteran Larry Probst and he will continue to act as a CEO till the board of directors find a suitable replacement. Further, the company states that the quarterly earnings which they are going to announce in May would be a little lower than expected.

Also, the company has announced that they would be removing ‘The Sims Social, ‘SimCity Social’ and ‘Pet Society’ as the number of online users have reduced dramatically. However, this doesn’t mean that the company will stop releasing new games as they have confirmed that they would release Bejeweled, Solitaire, and Plants vs. Zombies titles later this year.

We hope that these layoffs and the change in the management is a part of their plan to improve its products. For the past few years, the company has not been able to deliver what it used to and for two years in a row, Electronic Arts has been voted as the worst company in the world. Hence, with these changes we would like to see the company deliver some quality products without any glitches like they used to a few years back.

via Electronista News