Electronic Arts Issues 1,000 Pink Slips

Electronic Arts is planning to lay off 1,000 employees, approximately 10% of their employees. In this layoff their also consolidating EA Black Box back into EA Canada. EA Black Box was spun off as a studio outside of EA Canada to work on such titles as Need for Speed but, with the layoffs arriving, they’re going to be merging the remainder of EA Black Box into EA Canada by June 2009. The remaining EA Black Box employees will continue working on Skate 2.

The pink slips should be issued by March 31, 2009 and we’re hoping the folks that have lost their jobs will find new jobs as soon as possible. An Electronic Arts representative said:

“This does not mean that the Black Box studio is closing. The studio is moving to our Burnaby campus to share the facility with EAC and other EA teams that operate out of our state-of-the-art facility. We will operate two distinct studios, each with their own distinct culture and teams, out of our Burnaby facility.” (gamespot)

EA hasn’t mentioned any specific franchise cancellation but we’re going to assume something is going to slip, it’s hard to imagine a company can lose 1,000 employees without impacting business operations. If EA was able to layoff 1,000 people without impacting day-to-day business, then they’re definitely hurting in the management department because that would be a ton of waste.

Big companies may cut costs during hard times but they said they’re, “implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities. The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers.”

We’re curious just how much EA is willing to risk on “creative” endevours considering publishers are already hesitant to break new ground. The next few years should yield great opportunities for smaller developers to put on their creative hat and open new doors and opportunities for themselves.

0 thoughts on “Electronic Arts Issues 1,000 Pink Slips”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 347: Final FantasyEpisode 347: Final Fantasy

This week’s podcast features the Gaming Flashback of Final Fantasy VI, which takes up a third of the podcast as Paul and Jordan enthuse about the Japanese roleplaying game at length – so much so, that some news items were skipped over due to running length. Jonah prepares for his trip to PAX East 2014 for the weekend. He also proclaims Emperor Palpatine dancing in Kinect Star Wars the best thing to ever happen for Star Wars.

This week’s news includes:

  • Amazon says FireTV will boost mid-market games
  • Borderlands 2 Vita bundle hits on May 6, game launches May 13
  • Molyneux predicts Kinect-less Xbox One
  • Microsoft looking into Xbox 360 emulation through Xbox One

A lot of Listener Feedback this week, and the Question of the Week is “What mobile games have you played recently?”

Xbox 360’s Fable 2: No Online Co-Op In BoxXbox 360’s Fable 2: No Online Co-Op In Box

Much like Kameo: Elements of Power, Fable 2 ships without online co-op mode on day-one. However, Kameo didn’t promise the co-op mode prior to the games release, or talk about it in their presentations and hype machine conferences.

How does that happen? It’s easy to promise a feature but words do not make games true. More than likely the online co-op was a bit more complicated or had some bugs that needed to be shaken out prior to shipping. Microsoft is talking about releasing a patch for the new co-op play on the first week or so of the game release.

There are two options: ship a product that’s buggy and deal with the online PR nightmare with bugs and day-one patches, or, ship it without the feature and promise it early in the launch phase of the game. Once the code is complete, game software has to go through the packing, duplication and shipping phase. A lot of last minute testing can get done in the time it takes to produce the boxed product.

Hopefully Microsoft is doing some last minute testing to make a more reliable presentation of online co-op which everyone can use. However if it releases with a bunch of bugs…

(Thanks, GameSpot)

Episode 719: Random TalkEpisode 719: Random Talk

This week, there was almost no news (until the last second). Instead, the guys talk about videogames they’ve been playing and the minor news items that popped up.

The one major news item:

  • Gamers seek legal win that would stop developers from rendering online games unplayable

Let us know what you think.