Electronic Arts preparing to lay off at least 500 employees?

By on April 16, 2012, 3:46 PM

Electronic Arts is planning to lay off anywhere from 500 to 1,000 employees, or between five to 11 percent of their total workforce. The move could happen as soon as this week according to multiple sources within the company as reported by Derek Andersen from Startup Grind.

EA has since chimed in on the story with the following statement issued to MCV:

"There are no lay-offs as such, we always have projects growing and morphing. At any given time there are new people coming in and others leaving. EA is growing and hiring and building teams to support the growing demand for digital games and services."

Despite the statement, Andersen still stands behind his original story and says that EA will likely spin any downsizing as some sort of “restructuring” rather than calling them “layoffs.” He says that pink slips were originally scheduled to be handed out April 9 but were ultimately pushed back.

Reasons for layoffs are aplenty, says Andersen. Sources tell him that estimates put Battlefield 3 sales around 13 million units and the company spent another $30 million in advertising after the release in an effort to further drive sales. The same thing was reportedly done with the Star Wars MMO but the move seemed to backfire as subscriptions are already declining.

Further backing his layoff claim is the fact that EA’s stock value has declined significantly in the past several years despite an opinion that game quality has improved. EA shares were once valued at nearly $70 but currently sit under $16. Anderson feels that CEO John Riccitiello’s time as the head of EA could be dwindling.

User Comments: 16

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Guest said:

Any chance it's their Origin group?

Leeky Leeky said:

Wishful thinking I think, Guest.

pmkrefeld said:

Is there any chance the other 95% will follow?

psycros psycros said:

Not till they've destroyed every major studio in their stable. Their working hard, though.

Guest said:

When I read the new I though as a joke than one reason is how much they spend on mass effect 3 reviews, but after reading the reasons for the lay off I think that maybe could be a true reason. (sorry for the bad english)

9Nails, TechSpot Paladin, said:

With a lot of wishing, they start at the top, and work their way down. EA regurgitates the same games over and over, and makes bad decisions that effect its customers. I've heard the words, "Boycott EA" too many times from its customers claiming poor games, SecUROM issues, lack of customer satisfaction and support, and how EA consums good game studios bleeding them dry and disbanding them later.

amstech amstech, TechSpot Enthusiast, said:

The 'Origin' software (which I like actually) was their chance to make a massive splash in the industry and really start making big time friends, but their ego's chained Origin's abilities/inventory and now they are paying the price.

Guest said:

Myself and a lot of my friends are done with EA.

Guest said:

"...and the company spent another $30 million in advertising after the release in an effort to further drive sales."

Wouldnt have had to spend that much money if you would just amend the issues you have with steam fools

tengeta tengeta said:

Stay classy EA.

Mindwraith said:

So that explains IGN's strange "did you like the new Star Wars patch" poll the other day..

Guest said:

This is just the start of EA's woes.

Distributing un-Godly filth does have a consequence.

Marnomancer Marnomancer said:

TBH, no one is sad, seeing the recent developments in EA's track record.

If the guys being laid off have nothing to do with Origin, I'm sad for them.

I am now skeptical of Crysis 3...

Guest said:

I hate EA with a passion that's known to most Steam users, so this is good news. I really hope EA will fail and fade away, but I seriously doubt that will happen.

The problem is, people that hate EA still buy their games. I hear my friends saying they hate EA, BUT... they have to buy BF3 because it's awesome, and they have to buy Mass Effect 3 because they played ME1 and ME2. This is why EA is still around!

If you don't like EA, don't buy their games!

Guest said:

Its a shame 500 people could lose there jobs over bad business decisions of the big wigs. I know you have to spend money to make money but from what i seen for EA the profit wasnt there.

lipe123 said:

Here is a newsflash, marketing does not make a junk game better EA.

If you spent that 30$ mil on actually making decent bug free enjoyable games you wont need to lay off people.

Honestly they should just close shop, EA took over all the small companies that made good games to kill off all competition and now their reign of crappy sub standard games is starting to run out.

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