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  Reports: Electronic Arts Lays Off Employees In 'Seasonal Roll-offs'
by Kyle Orland [PC, Console/PC]
26 comments
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October 27, 2010
 
Reports: Electronic Arts Lays Off Employees In 'Seasonal Roll-offs'

Reports point to layoffs for 100 or more EA employees from around the company -- which it says are part of seasonal staffing adjustments following the busy holiday production cycle.

ShackNews cites an unnamed source in reporting that "as many as 100 employees" from Vancouver's EA Canada and EA Black Box were let go earlier today. A tweet from 3D Realms' George Broussard places the toll at EA Canada alone at over 100 employees.

The reported layoffs are said to affect teams that worked on games including Skate 3, EA Sports Active and NBA Elite 11. 1UP sources report Elite is being transfered to development at EA Tiburon, after the game was recently delayed to 2011 over "concerns about gameplay polish."

This latest round of layoffs follows an annual pattern at Electronic Arts of paring down staffing numbers after the bulk of development for the packed holiday release season is done. The publisher let go of 600 employees in October of 2008 and confirmed lay offs for 1,500 last November.

"As you know, seasonal roll-offs that follow game launches are common and vital to maintaining a healthy business," EA spokesperson Jeff Brown told Joystiq in a statement.

"Because so many of our games ship in the holiday quarter, the team size adjustments tend to follow in the same timeframe. However, EA is growing and several of our studios are looking to hire talented people."
 
   
 
Comments

Christopher Enderle
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The terminology sort of makes the game industry sound like the agriculture business. I wonder if people who get hired during ramp up and then let go at launch are considered "seasonal" workers. Also, way to add insult to injury, Jeff Brown, with that last line.

Rodney Brett
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Haha! I love your first statement. :)

David Knott
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That final quote is a classic example of corporate doublespeak.

Evan Moore
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Perhaps EA should take a look at this...perhaps all corporations should...
http://www.thatvideosite.com/video/well_drawn_explanation_on_what_motivates_us

That has to be the most hilarious closing statement, in the context of this article.

Andre Gagne
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Keep in mind that these are ways for companies to remove people who are either not doing their work or have archaic, un-profitable viewpoints, for example, consider user testing to be silly.

But on the other side it's also a way for character assassinations to be fulfilled!

Rodney Brett
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Exactly! How do you get another job when you have to explain the reasons for your termination.

M C
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Is this the part where EA is profitable again? No?

Dave Dundy
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Why do people continue to work for these assholes?

Daniel Zeligman
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Supply is far greater than demand for gaming jobs. People will take whatever they can get.

Maurício Gomes
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It is not the inverse? I mean, the demand for jobs is greater than the supply?

Or you meant that the supply of people is greater than the demand for for people?


But replying to Dave:

It is what Daniel said... I am for example unemployed, I live in a crap country, and I have huge debts after paying a private game school.

Although I don't plan in working at EA, or Ubisoft, or etc... If there are a opportunity, I would probably take it, because I need those crap companies, I cannot turn the offer down, if the other option is death (unfortunately in my case, quite literally, because of the sheer violence of the place where I live...)

Daniel Zeligman
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The latter: supply of people greater than demand for people.

Mathieu MarquisBolduc
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Not around these parts. Here employers are fighting over experienced developpers.

Camilo R
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Really tough to be in the gaming business, might as well get that CS degree and apply it to something else, something more stable. Developing games is not an easy thing, and then being treated like this really doesn't speak well for the industry.

Dv8thwonder GunplayNotoy
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Not too long ago you couldn't spell 'weak' without EA, now you can add bleak to the list as in their future.

Fiore Iantosca
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I hope you guys don't think this is only in the gaming industry. It's been happening in software(non-gaming) for years.

Eric Geer
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Why don't they just make temporary contracts with their employees--hire them for say 1 year as a contractor---so there is no obligation to keep them on after one year--but there is an option to pick them up after that year...This also gives the employee a chance to...um...look for a new job...prior to being expelled like a turd the day after eating a pot full of refried beans.

Fiore Iantosca
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Exactly. I know contracting sucks, but it may be the best alternative.

Rodney Brett
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I work at a Digital Art college and right now, contracting is the only way grads are surviving these days. I know of only about 5 or so people within my 5 year tenure at this place that have fulltime positions at studios. It's harsh.. Skillset is key right now. The better you are, the more work there is for you.

I'll add to this.. Now, the contracting positions are scarce for new grads because they are being swallowed up by recent layoff workers so they can only hope for unpaid internships or go overseas to Singapore and China for work..

Tomer Chasid
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'layoffs' is being used for shareholders, termed to show that the company is dedicated to cutting costs by allowing the turnover from higher paid staff to entry level staff. if ea really saw seasonal production cycle as a human resource issue they would contract the work for the rest of year. Canada already has universal health care, so the difference between contract and full time employment is less significant than it is in the US, for example.

Usually, as soon as layoffs occur, someone winds up making a killing on wall street. Shareholders are idiots for the most part because they make decisions on the most rudimentary of facts presented to them. Real productivity is not measured in Wall Street, only the perception of greater efficiency because they do not have the capacity to understand the business they are invested in (which goes against much logic and reason, warren buffet would agree). Even if the layoffs do not result in better improved performance (by industry, not wall street standards) they are still a stock boost.

How can they get away with it? Because we let them. We love the work we do and we believe that they are the only people that could allow us to do so. But the reality is that the majority of employment comes from small businesses who are reliant on a healthier staff. They cannot afford to spend resources on turnover. They are less likely to deal with unintelligible investors and be burdened with increasing the perceived value of their company.

Todd Boyd
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Agreed -- if this "seasonal roll-off" crap is part of their regular schedule, then they should definitely seek contracted work during their "push" period rather than squashing the short-term (and potentially long-term) financial futures of their once-valued employees.

"Okay, your game shipped... now get the hell out of here" is what it sounds like to me.

Nathan Mates
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While layoffs might be believed to help stock price, the last few times I've seen news of EA layoffs, the stock price has been down the last few times. Sites like http://finance.yahoo.com/q?s=ERTS (down 1% today) and http://www.thestreet.com/_yahoo/story/10903624/1/electronic-arts-stumbles -on-lay
offs.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA note that investors aren't buying on this news. I don't have the time to dig up hard proof to similar times in the past 4-8 quarters, but my memory is that there's no current correlation between layoff news and ERTS improving.

(Disclaimer: I used to be employed in the EA family of companies. Left voluntarily.)

Lo Pan
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Thank you for your hard work on game X. Here is a severance of two weeks and here is your box.

Buck Hammerstein
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only the dispensable got laid off, the people who had great talent and hard work ethics were deemed worthy of exploiting for another pay period.

EA doesn't really "lay off" anyone 'cause slaves aren't "let go"...

Philip Wilson
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That's kind of a messed up way of putting it b/c just because people are laid off in no way means that those people are "dispensable". The demand to cut staff from those higher up in the ranks who have no connection or knowledge of those departments that they watch over is your classic example of corporate suits not giving a flying f*ck.

Example: IGN had a round of layoffs in March of this year & many of those layoffs were questionable...and that fact was proven questionable when the IGN GM (Roy Bahat) said that the company was doing well & that profits were up 40%.


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