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EA Announces Increased Net Loss, Confirms 1,500 Layoffs
EA Announces Increased Net Loss, Confirms 1,500 Layoffs
November 9, 2009 | By Chris Remo

November 9, 2009 | By Chris Remo
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Electronic Arts said it would lay off 1,500 workers by April 2010, alongside second fiscal quarter results that saw the publisher post a decrease in year-over-year revenues and a widening net loss of $391 million.

About 1,300 of those layoffs are part of a wide-reaching restructuring plan that will include "the closure of several facilities." The move, which will cost EA between $130 million and $150 million, is expected to save $100 million annually (just over a fourth of what the company said it lost this quarter).

Earlier today, the publisher announced it acquired social game publisher Playfish for $300 million.

EA's $391 million quarterly loss represents a 26 percent increase over the $310 million loss in last year's second quarter. It comes as GAAP revenue dropped 12 percent year over year to $788 million.

The company's earnings statement, however, pointed out that non-GAAP revenue, excluding the deferred earnings adjustments that must be factored into GAAP accounting, saw a record high of $1.147 billion, up 2 percent from $1.126 billion the year before.

"EA is performing well, with quality, sales and segment share up so far this year," said CEO John Riccitiello. "We are making tough calls to cut cost in targeted areas and investing more in our biggest games and digital businesses."

Looking forward, internal guidance pegs the company as maintaining profitability during its third and fourth fiscal quarters, but taking a loss for the overall 2010 fiscal year, which ends March 31. That loss will be slightly wider on a GAAP basis than previously expected, due to expenses related to the Playfish acquisition.


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Comments


John Woznack
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"EA is performing well, with quality, sales and segment share up so far this year," said CEO John Riccitiello.

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Well, apparently NOT John, since you're laying off 1500 employees!



Hey John, here's an idea: Keep the 1500 employees and pay their salaries out of the BILLIONS that have been set aside for executive bonuses. What's that? Oh right, right. The good of some executives far outweigh the good of thousands of employees.

steve roger
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What is sad is that EA continues to gobble up gaming companies and then when their bottom line drops due to reckless spending they shed the employees they just took under their wing.

Isaac Lanier
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thats the way ea has always done it

and they will always do it.

they buy company kick them off there projects give them to internal studio who make the game suck then they go and buy the new company and give them back what they started some 3 to 5 years ago with part 1 now they go to fix part 3.

the company as a whole do not have any ideas left in it and have to buy brain power after they get yo IPs and take what is good from yo software. they release merged messed of what was good ideas into a game and the people like me go out and wait in line for the all nite knowing thats its gonna fall short in all aspects. y do they have declining year over year sales. look at there year over year game ratings.

EA products = Copy from other games

now they bought all the companies

EA products = Well i Still play Fight Nights but what boxing game i cant clinch and punch. and what happen to glancing blows most of my knockouts came when i pretty much missed. So im happy EA cant help but make crap games that fall short. because if not I would suck at EA games. But since its the same problems from back in time i still know how to play and since they redid the controls of Live and Madden. I kill even more because its new u EA player but its A Copy of 2k controls right at home. the company that used to make Madden now make 2k and thats why year after year 2k out rates EA except Hockey.


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