Electronic Arts Suffers Large Quarterly Loss, Plans Massive Headcount Reduction
Electronic Arts reported financial results for its second fiscal quarter ended September 30, 2009 along with plans to reduce staff:
While EA attributed around $232 million of the loss to changes in deferred net revenue, the company also announced a new restructuring plan that will involve firing around 1,500 employees. The company expects to reach this goal by March 31, 2010, saving around $100 million per year. Of course, this will come at a restructuring price tag of around $130 to $150 million. This follows last year's plan to reduce 10% of EA's staff.
62% of revenues came from North American revenues, with 34% coming from Europe and the remaining 4% coming from Asia. By platform, 32% came from Xbox 360-related revenues, 18% came from PC-related sales and 13% came from PlayStation 3-related sales with other platforms making up the remainder.
As was announced earlier today, EA also acquired Playfish for around $300 million with possible future payments of up to another $100 million.
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