EA Cut Ten Percent of Workforce in Last Quarter

During its conference call last night to discuss its 2013 fiscal year earnings, Electronic Arts CFO Blake Jorgensen revealed that the company cut ten percent of its workforce in the last quarter, or about 900 employees.

"Our cost reduction plans will reduce our overall headcount by approximately 10 percent," he said during the call.

EA has been keen to keep layoff numbers close to the vest. Yesterday's conference call was the first time the company revealed some numbers on just how many employees from its worldwide workforce it had let go in recent months. The 900 employee figure is based on EA's worldwide employment numbers in 2012, which number somewhere in the neighborhood of 9,000.

EA also revealed that these layoffs cost the company $16 million in severance payments.

On another front of interest to GamePolitics readers, EA claims that it sold 1.6 million units of SimCity since its March launch, with approximately 50 percent of those sales via digital distribution. The company did not say how the launch impacted sales or if there were any charge backs from retailers who gave refunds to consumers (not many retailers did).

"SimCity [is] a great game that has recovered from a challenging launch," said EA Games label president Frank Gibeau. "The short explanation for the launch is that the initial rush of consumers overwhelmed our game service, disrupting the consumer experience. As we stabilized the game and improved service in the first week, fans continued to pour in. So far we are ahead of forecast with more than 1.6 million units currently sold through to consumers. The digital story is particularly strong – nearly 50 percent of those sales were high-margin digital downloads.


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