Electronic Arts to slash 17% of workforce amid quarterly losses

| November 10, 2009 | 0 Comments

US video game maker Electronic Arts (EA) is to embark on a further cost-cutting exercise as the market for videogames remains weak.

The company, famous for its Rock Band and Madden videogame franchises, is to eliminate 1,500 jobs by the end of March (around 17% of its workforce) and the job losses are in addition to the 1,100 jobs already shed this year.

The company, which currently has about 9,000 employees, said it is “cautious” about the remainder of the year and October was another down month for the videogame market.

EA reported a net loss of $391 million in the third quarter, compared with a loss of $310 million in the same period a year earlier.

EA said it is moving into electronic book publishing and yesterday enhanced its presence in internet and wireless gaming with the acquisition of social network games maker Playfish for $300 million.

Commenting on the deal, John Schappert, chief operating officer for EA, said: “Playfish has set themselves apart by building the best quality games in the social gaming space. We’re looking forward to combining their publishing model with our great brands.”


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