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Electronic Arts Lays off 10%, Shuts Down Studios, Moves Black Box

by Rainier on Dec. 19, 2008 @ 6:49 a.m. PST

Earlier this month EA's financial situation indicated there would be layoffs, title cancellations, mergers and various other cutbacks, one of them being scrapping the plans for its new 20,000-square-foot facility in Vancouver, Canada. EA has now further detailed the cutbacks, revealing it will consolidate or close at least nine studios and publishing locations, and lay off 10% of its workforce. The Black Box development teams and associated game franchises will move to the nearby EA studio location.

EA expects the restructuring plan will result in annual cost savings of approximately $120 million and restructuring charges of approximately $55-65 million over the next several quarters.

The plan is intended to reduce EA’s worldwide work force by approximately 10 percent or 1,000 people. The majority of these actions will be completed by March 31, 2009. This represents a four percent increase from the six percent reduction EA announced on October 30, 2008.

The restructuring also calls for consolidation or closure of at least nine studio and publishing locations. Among the facilities to be consolidated is the Black Box Studio facility in Vancouver, British Columbia. The Black Box development teams and associated game franchises will move to the nearby EA studio location in Burnaby, British Columbia.

EA is 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.

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