EA cuts 1,500 jobs, bottom third of line-up

EA announced today that they are cutting 1,500 jobs and axing the bottom third of their current game line-up to cut costs and create a stronger, leaner portfolio.

The announcement came in the form of a "cost reduction plan" that included the termination of 1,500 workforce jobs as well as shutting down a number of company facilities, as outlined in EA's annual 2nd quarter financial results press release.

The decison stemmed from the desire to "narrow its [EA's] product portfolio to provide greater focus on titles with higher margin opportunities," according to the release, which would reportedly save the company an approximate $130-150 million.

"This action will result in the closure of several facilities and a headcount reduction of approximately 1,500 positions, of which 1,300 are included in a restructuring plan. The majority of these actions will be completed by March 31, 2010. This plan will result in annual cost savings of at least $100 million and restructuring charges of $130 to $150 million," the release read.

Additionally, at least a dozen unannounced titles have been cut from the company's current release roster as part of the restructuring effort, according to EA's John Schappert.

The move is a "targeted cost reduction which will allow a greater investment in our hit titles and digital businesses," Schappert said. It will allow for a greater focus on the company's more lucrative properties.

Schappert could not comment on what titles had been cancelled, saying only that the bottom-third of the release schedule had been cut. No one speaking for EA could comment on which facilities or company divisions would be getting hit with layoffs as of press time.

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