Friday December 19, 06:58 PM
Electronic Arts to cut more jobs, close studios
NEW YORK (AFP) - Struggling US videogame maker Electronic Arts Inc. announced additional job cuts on Friday and plans to merge or close at least nine studios and publishing facilities.
The Redwood City, California, company said it was cutting its worldwide workforce by 10 percent, or 1,000 jobs, an increase of four percent over the six percent workforce reduction announced in October.
"The restructuring also calls for consolidation or closure of at least nine studio and publishing locations," the publisher of such popular titles as Madden NFL 09, Spore and Warhammer Online said in a statement.
"EA expects the restructuring plan will result in annual cost savings of approximately 120 million dollars and restructuring charges of approximately 55-65 million dollars over the next several quarters," the company said.
The videogame maker said it expects the moves to be completed by March 31, 2009.
It said one of the plants to be consolidated is the Black Box Studio facility in Vancouver, British Columbia, which will be moved to a nearby EA studio in Burnaby, British Columbia.
EA also said it would be "implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities."
"The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers," it said.
EA reported a net loss of 310 million dollars during the second quarter and warned earlier this month that its fiscal 2009 results would be lower than forecast because of slower-than-expected sales in North America and Europe.
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