Electronic Arts Falling Revenues Result in Layoffs
Electronic Arts Inc. (NASDAQ: EA), which recently dumped its chief executive officer, has decided to cut a large number of workers as well.
EA has been unable to make the transition from a company that makes games for old-style consoles to one that makes versions for the growing portable device market, although it has tried. In the fourth quarter of last year, EA revenue fell from $1.06 billion in the period a year ago to $922 million. EA lost $45 million. Mobile revenue was only $86 million.
EA's layoff announcement said:
In recent weeks, EA has aligned all elements of its organizational structure behind priorities in new technologies and mobile. This has led to some difficult decisions to reduce the workforce in some locations. We are extremely grateful for the contributions made by each of our employees - those that are leaving EA will be missed by their colleagues and friends.
These are hard but essential changes as we focus on delivering great games and showing players around the world why to spend their time with us.
Filed under: 24/7 Wall St. Wire, Entertainment, Labor, Video Games Tagged: EA, featured