Electronic Arts Fires 900 In “Organizational Restructuring”

It seemed as though Electronic Arts, one of the industry’s titan-like companies, could not possibly lose any more public favour.  Yet again, however, the rumour mill turns as EA announced during its most recent conference call that approximately 900 employees had been fired as part of an “organizational restructuring.”

This announcement came with the emphasis by EA CEO Blake Jorgensen that the industry is in a period of transition because of the upcoming next-generation game consoles.  Jorgensen then noted Electronic Arts’ plans to “reduce [its] overall headcount by approximately 10 percent” as a cost-cutting measure in preparation for the next console generation. The company-wide layoffs have, at present, cost EA about $16 million in severance payments.

Electronic Arts is not unknown for its company-spanning changes; in fact, the past few years have cemented the practice as a trend. Last May, five to ten percent of EA’s workforce were cut due to “restructuring”.  Additionally, around 800 employees were laid off between 2010 and 2011. At last count, Electronic Arts still retained 9,000 employees, though this was estimated in March of 2012. Whether or not the company’s loss of personnel and drastic alterations will ultimately pay off remains to be seen.