Published in Gaming

EA drops the axe on more employees

by on10 November 2009

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Black Box, Redwood Shores, and Tiburon hit

Rumors have been lingering for about a week now about additional layoffs to be handed down by Electronic Arts prior to the company’s earnings report. Sources suggest that the numbers of layoffs are in the hundreds. We have been unable to confirm if any of the cuts will result in the cancellation of any upcoming titles at this time.

Staff members at the offices in Burnaby, Orlando and San Francisco were some of those previously affected. In addition, EA’s Black Box, Tiburon, and Redwood Shores studios have all lost employees as part of this action, as well. The studios are responsible for a variety of key franchise titles. It is unknown how the cuts will affect the release schedule of upcoming releases that are already in the pipeline for next year.

While some former employees are describing the cuts as significant, others are suggesting that it has more to do with making the company leaner because of the Playfish deal. Our sources tell us that while some of the plan has to do with restructuring and reducing costs, some of it has to be attributed to the rather poor performance of some of the recent releases, which have not yielded the expected sales numbers; and the company is bracing for a tough holiday sales season.

Last modified on 10 November 2009
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