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.