Lending credence to the rumors of massive layoffs, EA details a âcost reduction planâ in its 2nd quarter financial results press release that will result in the termination of 1,500 employees.
https://lastchance.cc/rumor-ea-guts-workforce-after-big-playfish-buyout-5400594%3C/a%3E%3C/p%3E
âThis action will result in the closure of several facilities and a headcount reduction of approximately 1,500 positions, of which 1,300 are included in a restructuring plan. The majority of these actions will be completed by March 31, 2010. This plan will result in annual cost savings of at least $100 million and restructuring charges of $130 to $150 million.â
News of the reductions comes in the same press release that reports record non-GAAP revenue for the 2nd quarter, with $1.147 billion up 2 percent from the same time last year, surpassing street expectations.
The release also mentions EAâs $300 million acquisition of social network games developer Playfish, which we reported on earlier today. One could assume this means that Facebook games have âhigher margin opportunities.â
https://lastchance.cc/ea-acquires-pet-society-creator-playfish-5400333%3C/a%3E%3C/p%3E
The release did not name which facilities would be seeing cuts, though rumors indicate that EA Tiburon, Black Box, Redwood Shores, and Mythic are among those seeing layoffs today.
