EA Tightens Its Belt: New Layoffs, Closed Studios (ERTS)

Electronic Arts (ERTS) issued a warning last week that holiday sales were less than expected. Now it’s cutting costs: The company announced today it is laying off 1,000 employees, about 10% of its workforce, an escalation from the 6% layoffs EA announced in October.

Numerous studios will be shut down. EA’s new battle plan: “Narrow its product portfolio to focus on hit games with higher margin opportunities.”

The company estimates the move will save about $120 million a year on charges of about $60 million.

See Also:
Electronic Arts: Holiday Sales Bad For Us, Too
EA Q2: Earnings Guidance Weak, Company Laying Off 6%
SimCity For iPhone Falls Short, Rolando Rocks

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