EA plans to close nine facilities and cut 1,000 jobs across all divisions.
The company is blaming economic uncertainty for the unpopular move, and claims it is not generating as much revenue as expected. EA spokesman Jeff Brown says the company needs to focus on "making bigger bets on fewer games and cut costs accordingly." Apparently, EA plans to play it safe, investing in popular franchises and proven concepts, rather than truly new, innovative, but also risky, titles.
EA expects it will save $120 million a year as a result of the restructuring, although the scheme itself will end up costing the company $65 million to implement. The company currently operates a number of facilities in the U.S. and Canada, and it's still unclear which are to be closed under the plan.