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Electronic Arts cuts forecasts, cuts 6% of workforce
Citing the “uncertain economic climate”, John Riccitiello, CEO of EA, today announced that EA will be reducing headcount by approximately 6% (600 people by our estimates) by the end of March 2009. The redundancies are expected to cost approximately $10 million in EA’s fiscal third quarter (ended Dec 08) and to save $50 million per annum.
The company also reduced guidance for year ending March 2009 to revenue of $5.0 billion – $5.3 billion.
Key elements of the cost reduction plan include:
- reducing workforce by 6%
- moving more employees to low-cost locations
- releasing fewer titles
The shift to low-cost locations is interesting. Does it risk development talent migrating away from LA, San Francisco and the UK?
Redunancies added to the GameOverZone.