Electronic Arts Lays Off Hundreds

An SEC filing from Electronic Arts today announces the company is laying off 6% of its workforce amid a restructuring plan. GamesIndustry.biz does the math on this, estimating it means around 775 lost jobs based on the 12,900 global employees reported by EA's latest annual financials. Here's the announcement:
On March 27, 2023, the Board of Directors of Electronic Arts Inc. (the "Company") approved a restructuring plan (the "Plan") focused on prioritizing investments to the Company's growth opportunities and optimizing its real estate portfolio. The Plan includes actions driven by portfolio rationalization, including intellectual property impairment charges and headcount reductions impacting approximately 6% of the Company's workforce, in addition to office space reductions.

The Company estimates that it will incur approximately $170 million to $200 million in charges in connection with the Plan. These charges consist primarily of approximately $65 million to $70 million in charges related to intellectual property impairment, approximately $55 million to $65 million related to employee severance and employee-related costs, approximately $45 million to $55 million associated with office space reductions, and approximately $5 million to $10 million of other charges, including contract cancellations. Of the aggregate amount of charges that the Company estimates it will incur, the Company expects that approximately $80 million to $100 million will be future cash expenditures.

The actions associated with the Plan are expected to be substantially complete by September 30, 2023. Certain payments associated with lease obligations will be paid in accordance with their terms.
View : : :
19 Replies. 1 pages. Viewing page 1.
Older [  1  ] Newer
1.
 
Re: Electronic Arts Lays Off Hundreds
Mar 29, 2023, 19:21
1.
Re: Electronic Arts Lays Off Hundreds Mar 29, 2023, 19:21
Mar 29, 2023, 19:21
 
At least the bonuses will be huge in the C-Suite.
And that's all that really matters.
"I expect death to be nothingness and by removing from me all possible fears of death, I am thankful to atheism." Isaac Asimov
Avatar 58135
2.
 
Re: Electronic Arts Lays Off Hundreds
Mar 29, 2023, 21:31
2.
Re: Electronic Arts Lays Off Hundreds Mar 29, 2023, 21:31
Mar 29, 2023, 21:31
 
At least we know it's not in QA. EA doesn't have that department.
"Just take a look around you, what do you see? Pain, suffering, and misery." -Black Sabbath, Killing Yourself to Live.

“Man was born free, and he is everywhere in chains” -Jean-Jacques Rousseau
Avatar 21247
3.
 
Re: Electronic Arts Lays Off Hundreds
Mar 29, 2023, 22:20
3.
Re: Electronic Arts Lays Off Hundreds Mar 29, 2023, 22:20
Mar 29, 2023, 22:20
 
this is good and bad news depending how you look at it... obviously the bad news is people are losing their jobs. the good news is, powel should pivot next month so the "bleeding" might stop sooner than later.
Avatar 55679
4.
 
Re: Electronic Arts Lays Off Hundreds
Mar 29, 2023, 22:42
Slick
 
4.
Re: Electronic Arts Lays Off Hundreds Mar 29, 2023, 22:42
Mar 29, 2023, 22:42
 Slick
 
Damn, that's like 3 Valve's worth of developers.
Avatar 57545
5.
 
Re: Electronic Arts Lays Off Hundreds
Mar 29, 2023, 22:48
5.
Re: Electronic Arts Lays Off Hundreds Mar 29, 2023, 22:48
Mar 29, 2023, 22:48
 
Burrito of Peace wrote on Mar 29, 2023, 21:31:
At least we know it's not in QA. EA doesn't have that department.
Savage.

Bethesda has entered the chat.
If Russia stops fighting, the war ends. If Ukraine stops fighting, Ukraine ends. Slava Ukraini!
Avatar 22024
6.
 
Re: Electronic Arts Lays Off Hundreds
Mar 29, 2023, 22:57
Prez
 
6.
Re: Electronic Arts Lays Off Hundreds Mar 29, 2023, 22:57
Mar 29, 2023, 22:57
 Prez
 
Sometimes layoffs are due to unforeseeable economic pressures that make them a little more forgivable. (Although they will never not suck and will always make me empathize with those affected). The layoffs we have seen in the last few months, however, are due to corporations either not caring or being embarrassingly clueless as to the very obvious signs as to what was coming. The extent of the layoffs we have been seeing is due to corporation negligence and indifference to its staff, and that pisses me off.
“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
- Mahatma Gandhi
Avatar 17185
7.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 01:12
7.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 01:12
Mar 30, 2023, 01:12
 
Prez wrote on Mar 29, 2023, 22:57:
The layoffs we have seen in the last few months, however, are due to corporations either not caring or being embarrassingly clueless as to the very obvious signs as to what was coming. The extent of the layoffs we have been seeing is due to corporation negligence and indifference to its staff, and that pisses me off.
I'd agree with you if it weren't for the mention of IP impairment. Most peoples' eyes glaze over when they see accounting lingo, but it feels like EA is using the layoffs as a smokescreen to write down the value of crappy acquisitions that they overpaid for.
NULL POINTER ERROR
8.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 06:33
8.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 06:33
Mar 30, 2023, 06:33
 
I would really like to know specifics about what intellectual property lost it's value, and more importantly why.
Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming "Wow! What a Ride! -- H
Avatar 57379
9.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 08:06
9.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 08:06
Mar 30, 2023, 08:06
 
gross profits were 5B last year. EAs highest.
Never argue with an idiot. They will drag you down to their level and beat you with experience.
10.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 08:11
10.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 08:11
Mar 30, 2023, 08:11
 
Armengar wrote on Mar 30, 2023, 08:06:
gross profits were 5B last year. EAs highest.
That much tougher to increase then -- better cut some staff, employees are their biggest cost!
“Extinction is the rule. Survival is the exception.” -- Carl Sagan
11.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 13:44
11.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 13:44
Mar 30, 2023, 13:44
 
Mr. Tact wrote on Mar 30, 2023, 08:11:
Armengar wrote on Mar 30, 2023, 08:06:
gross profits were 5B last year. EAs highest.
That much tougher to increase then -- better cut some staff, employees are their biggest cost!

You joke, but that's literally the late stage capitalism thinking that goes on constantly, and it'll end up destroying the human race.
Avatar 54863
12.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 14:07
12.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 14:07
Mar 30, 2023, 14:07
 
Best of luck to those involved. I used to work as a contract game tester - after a major game release, the company fired us or didn't renew our contracts. E.G. Prey was delayed and my contract ended prematurely in 2012. It sucks.
13.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 14:17
13.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 14:17
Mar 30, 2023, 14:17
 
MoreLuckThanSkill wrote on Mar 30, 2023, 13:44:
You joke, but that's literally the late stage capitalism thinking that goes on constantly, and it'll end up destroying the human race.
I wasn't joking, I know that is how corporations (especially the US ones) think. Unfortunately, I don't think there is really a solution to the problem.
“Extinction is the rule. Survival is the exception.” -- Carl Sagan
14.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 16:07
14.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 16:07
Mar 30, 2023, 16:07
 
Armengar wrote on Mar 30, 2023, 08:06:
gross profits were 5B last year. EAs highest.

And? Microsoft posted a net income of over $70 billion and they laid off 10,000+ employees.
Threadcrapper Extraordinaire
15.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 17:14
15.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 17:14
Mar 30, 2023, 17:14
 
RogueSix wrote on Mar 30, 2023, 16:07:
Armengar wrote on Mar 30, 2023, 08:06:
gross profits were 5B last year. EAs highest.

And? Microsoft posted a net income of over $70 billion and they laid off 10,000+ employees.
Well... this is a gaming site...
“Extinction is the rule. Survival is the exception.” -- Carl Sagan
16.
 
Re: Electronic Arts Lays Off Hundreds
Mar 30, 2023, 17:37
El Pit
 
16.
Re: Electronic Arts Lays Off Hundreds Mar 30, 2023, 17:37
Mar 30, 2023, 17:37
 El Pit
 
EAaaaaa - you're out of the game
That was the slogan, right?
"There is no right life in the wrong one." (Theodor W. Adorno, philosopher)
"Only a Sith deals in absolutes." (Obi-Wan Kenobi, Jedi)
Founder, president, and only member of the official "Grumpy Old Gamers Club". Please do not apply.
17.
 
Re: Electronic Arts Lays Off Hundreds
Mar 31, 2023, 06:24
17.
Re: Electronic Arts Lays Off Hundreds Mar 31, 2023, 06:24
Mar 31, 2023, 06:24
 
The real term is Discarded. Layed off sounds too fuffy.
18.
 
removed
Apr 4, 2023, 21:28
18.
removed Apr 4, 2023, 21:28
Apr 4, 2023, 21:28
 
* REMOVED *

This comment was deleted on Apr 5, 2023, 03:00. Reason: Spam (rule 5)
19.
 
removed
Apr 28, 2023, 01:16
19.
removed Apr 28, 2023, 01:16
Apr 28, 2023, 01:16
 
* REMOVED *

This comment was deleted on Apr 28, 2023, 03:18. Reason: Spam (rule 5)
19 Replies. 1 pages. Viewing page 1.
Older [  1  ] Newer