The US video-games company EA Games has announced it is to cut 1,500 jobs as part of a cost-saving plan. These cuts come following EA’s announcement earlier this year that it was to shed some 1,100 jobs.
Announcing a second-quarter loss of US$391 million today, the video-games giant said it intended to follow a plan to narrow its product portfolio in order to focus on titles with higher margin opportunities.
This action, EA said, would result in the closure of several facilities and a headcount reduction of about 1,500 positions.
The majority of its restructuring plans will be completed by March of next year, the company said. It estimates the moves will add up to annual savings of US$100 million.
For the full financial year 2009, EA expects net revenue of between US$3.6 billion and US$3.9 billion, with diluted loss per share expected to be between US$1.20 and US$2.05.
“EA is performing well, with quality, sales and segment share up so far this year,” said John Riccitiello, chief executive officer of EA Games. “We are making tough calls to cut cost in targeted areas and investing more in our biggest games and digital businesses.”
EA acquires social gamer Playfish
The company also today announced the acquisition of leading social-games company Playfish for US$275 million in cash.
EA said the acquisition would offer it opportunities for social gaming and networking across a mass-market audience.
EA develops games for the PC, Wii, Xbox and PlayStation consoles, in addition to its activities in mobile and online gaming. Some of its best-known games include The Sims, Medal of Honour, Rock Band, Need for Speed, Burnout and Battlefield.
Article courtesy of businessandleadership.com