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Report: EA About to Let Go 500-1000 People

AmbrosiaAmorAmbrosiaAmor Miami, FLPosts: 915Member

Kotaku posted this about half an hour ago. Note that at this time it is labled a RUMOR

Article can be found here:

 

http://kotaku.com/5902222/report-ea-about-to-fire-500+1000-people

 

"According to a report on Startup Grind, a site that normally deals with tech companies and their founders, publisher Electronic Arts will very soon lay off as many as 1000 employees.

Originally planned to take place last week, the lay offs have reportedly been slightly postponed, though may now take place " as soon as this week".

The report claims between 500-1000 employees will be affected. That's a lot of people, even for a company as big as Electronic Arts.

Startup Grind's report goes on to speculate the layoffs are a result of a disappointing 2011 in which a few hit games (like Battlefield 3) had their sales overshadowed by an overspend on marketing, expensive acquisitions and disappointing subscriber numbers for big-budget MMO Star Wars: Old Republic.

We've contacted EA for confirmation, and will update if we hear back."

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Comments

  • sk8chalifsk8chalif Montreal, QCPosts: 599Member Uncommon

    Haha, we all saw this coming,  lucky i don't work for them anymore,

    image
    ~The only opinion that matters is your own.Everything else is just advice,~

  • DarkPonyDarkPony RotterdamPosts: 5,566Member

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

  • joocheesejoocheese San Antonio, TXPosts: 845Member

    I consider myself a EA Games hater so my opinion regarding their layoffs would be entirely biased. I hate EA Games for what they did to the beloved Sim City franchise.

  • sk8chalifsk8chalif Montreal, QCPosts: 599Member Uncommon

    the marketing for bf3 cost way to much,just presenting bf3 a E3 with the big sign on front  most have cost alot,

    its Sad for Dice , i loved them so much but EA is destroying everything,

    image
    ~The only opinion that matters is your own.Everything else is just advice,~

  • BardusBardus Cornet, ALPosts: 460Member

    Originally posted by DarkPony

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

    Don't leave out what Lucas gets. I have no proof of percentage but have seen claims of 35%. If it's true and you can bet it's substancel whatever it is, it's cutting big into EA's profits.

    image

  • DarkPonyDarkPony RotterdamPosts: 5,566Member

    Originally posted by Bardus

    Originally posted by DarkPony

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

    Don't leave out what Lucas gets. I have no proof of percentage but have seen claims of 35%. If it's true and you can bet it's substancel whatever it is, it's cutting big into EA's profits.

    True.

  • karmathkarmath Posts: 829Member Uncommon

    Originally posted by DarkPony

    Originally posted by Bardus


    Originally posted by DarkPony

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

    Don't leave out what Lucas gets. I have no proof of percentage but have seen claims of 35%. If it's true and you can bet it's substancel whatever it is, it's cutting big into EA's profits.

    True.

    Not really. When you take everything into account on the 250 million dollar ballpark, I'll be surprised if they have made a cent of profit. People tend to forget about interest on investor loans and taxes, those two things alone really start to burn when the project has that kind cost.

     

    While its the norm a developer will lay off staff post a large product launch, those are generally contract employees such as concept artists, sound engineers and project managers.

    The ballpark 500-1000 people is what a  entire large office branch consists of, these numbers point to different story than just culling unneeded staff post launch. Maybe those who made or were involved in some of the more less popular design decisions in SWTOR are getting the boot?

    Could this be potentially a good thing for SWTOR? 

  • BardusBardus Cornet, ALPosts: 460Member

    Been saving this for the right moment and this may be it...

    image

  • ignore_meignore_me Apple Valley, CAPosts: 1,987Member

    Originally posted by karmath

    Originally posted by DarkPony


    Originally posted by Bardus


    Originally posted by DarkPony

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

    Don't leave out what Lucas gets. I have no proof of percentage but have seen claims of 35%. If it's true and you can bet it's substancel whatever it is, it's cutting big into EA's profits.

    True.

    Not really. When you take everything into account on the 250 million dollar ballpark, I'll be surprised if they have made a cent of profit. People tend to forget about interest on investor loans and taxes, those two things alone really start to burn when the project has that kind cost.

     

    While its the norm a developer will lay off staff post a large product launch, those are generally contract employees such as concept artists, sound engineers and project managers.

    The ballpark 500-1000 people is what a  entire large office branch consists of, these numbers point to different story than just culling unneeded staff post launch. Maybe those who made or were involved in some of the more less popular design decisions in SWTOR are getting the boot?

    Could this be potentially a good thing for SWTOR? 

    Think they are about to call Raph Koster?

    Survivor of the great MMORPG Famine of 2011

  • DistopiaDistopia Baltimore, MDPosts: 16,905Member Uncommon

    Originally posted by sk8chalif

    Haha, we all saw this coming,  lucky i don't work for them anymore,

    This type of response will always boggle me, it seems somewhat sadistic IMO. To be clear I understand disliking corporations, but getting your jollies off of others loss of employment is just not right.  Most of those people are just doing what they're told to do like any other employee. You can bet most of those truly responsible will still be coming to work the next day, making as much as 10-20 of those others combined.

    For every minute you are angry , you lose 60 seconds of happiness."-Emerson

    It is a sign of a defeated man, to attack at ones character in the face of logic and reason- Me

  • karmathkarmath Posts: 829Member Uncommon

    Originally posted by ignore_me

    Originally posted by karmath


    Originally posted by DarkPony


    Originally posted by Bardus


    Originally posted by DarkPony

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

    Don't leave out what Lucas gets. I have no proof of percentage but have seen claims of 35%. If it's true and you can bet it's substancel whatever it is, it's cutting big into EA's profits.

    True.

    Not really. When you take everything into account on the 250 million dollar ballpark, I'll be surprised if they have made a cent of profit. People tend to forget about interest on investor loans and taxes, those two things alone really start to burn when the project has that kind cost.

     

    While its the norm a developer will lay off staff post a large product launch, those are generally contract employees such as concept artists, sound engineers and project managers.

    The ballpark 500-1000 people is what a  entire large office branch consists of, these numbers point to different story than just culling unneeded staff post launch. Maybe those who made or were involved in some of the more less popular design decisions in SWTOR are getting the boot?

    Could this be potentially a good thing for SWTOR? 

    Think they are about to call Raph Koster?

    I would lol with the force of a thousand suns if that happened!

  • ignore_meignore_me Apple Valley, CAPosts: 1,987Member

    Originally posted by karmath

    Originally posted by ignore_me


    Originally posted by karmath


    Originally posted by DarkPony


    Originally posted by Bardus


    Originally posted by DarkPony

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

    Don't leave out what Lucas gets. I have no proof of percentage but have seen claims of 35%. If it's true and you can bet it's substancel whatever it is, it's cutting big into EA's profits.

    True.

    Not really. When you take everything into account on the 250 million dollar ballpark, I'll be surprised if they have made a cent of profit. People tend to forget about interest on investor loans and taxes, those two things alone really start to burn when the project has that kind cost.

     

    While its the norm a developer will lay off staff post a large product launch, those are generally contract employees such as concept artists, sound engineers and project managers.

    The ballpark 500-1000 people is what a  entire large office branch consists of, these numbers point to different story than just culling unneeded staff post launch. Maybe those who made or were involved in some of the more less popular design decisions in SWTOR are getting the boot?

    Could this be potentially a good thing for SWTOR? 

    Think they are about to call Raph Koster?

    I would lol with the force of a thousand suns if that happened!

    So would he I think, lol  :)

    Survivor of the great MMORPG Famine of 2011

  • William12William12 Saint paul, MNPosts: 680Member

    Originally posted by Bardus

    Originally posted by DarkPony

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

    Don't leave out what Lucas gets. I have no proof of percentage but have seen claims of 35%. If it's true and you can bet it's substancel whatever it is, it's cutting big into EA's profits.

    Which is exactly why Smed said working with a 3rd party IP is not a good idea its restrictive and they make the money not you.

  • BardusBardus Cornet, ALPosts: 460Member

    Originally posted by Distopia

    Originally posted by sk8chalif

    Haha, we all saw this coming,  lucky i don't work for them anymore,

    This type of response will always boggle me, it seems somewhat sadistic IMO. To be clear I understand disliking corporations, but getting your jollies off of others loss of employment is just not right.  Most of those people are just doing what they're told to do like any other employee. You can bet most of those truly responsible will still be coming to work the next day, making as much as 10-20 of those others combined.

    As a card carrying hater like myself I have to say you remind me of my ex. Just when I think I have something to celebrate, you say something to give ME the headache.

    image

  • ignore_meignore_me Apple Valley, CAPosts: 1,987Member

    Originally posted by William12

    Originally posted by Bardus


    Originally posted by DarkPony

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

    Don't leave out what Lucas gets. I have no proof of percentage but have seen claims of 35%. If it's true and you can bet it's substancel whatever it is, it's cutting big into EA's profits.

    Which is exactly why Smed said working with a 3rd party IP is not a good idea its restrictive and they make the money not you.

    They keep going the way they are going, it's going to be 35% of dick

    Survivor of the great MMORPG Famine of 2011

  • DistopiaDistopia Baltimore, MDPosts: 16,905Member Uncommon

    Originally posted by William12

    Originally posted by Bardus


    Originally posted by DarkPony

    Wouldn't surprise me, but yeah ... rumor.

    Not sure if it has to do so much with actual sales though. The amount of copies sold at launch and around 1.7 mil subs in the first few months (though I am unsure what they are now), is still a hell of a lot of money. And running a launched game requires much less people compared to developing one. So if they have too much developers for the amount of projects in the pipeline, layoffs like that are unavoidable.

    Don't leave out what Lucas gets. I have no proof of percentage but have seen claims of 35%. If it's true and you can bet it's substancel whatever it is, it's cutting big into EA's profits.

    Which is exactly why Smed said working with a 3rd party IP is not a good idea its restrictive and they make the money not you.

    If I remember correctly the case was a bit different for SOE, in that LA was actually the publisher of SWG. I thought I read early on that LA was merely supplying the licensing and of course charging for it, and EA/Bioware self-published it.


    For every minute you are angry , you lose 60 seconds of happiness."-Emerson

    It is a sign of a defeated man, to attack at ones character in the face of logic and reason- Me

  • DistopiaDistopia Baltimore, MDPosts: 16,905Member Uncommon

    Originally posted by Bardus

    Originally posted by Distopia


    Originally posted by sk8chalif

    Haha, we all saw this coming,  lucky i don't work for them anymore,

    This type of response will always boggle me, it seems somewhat sadistic IMO. To be clear I understand disliking corporations, but getting your jollies off of others loss of employment is just not right.  Most of those people are just doing what they're told to do like any other employee. You can bet most of those truly responsible will still be coming to work the next day, making as much as 10-20 of those others combined.

    As a card carrying hater like myself I have to say you remind me of my ex. Just when I think I have something to celebrate, you say something to give ME the headache.

    In my case when mine gave me that headache, what she said usually tended to be true :p

    For every minute you are angry , you lose 60 seconds of happiness."-Emerson

    It is a sign of a defeated man, to attack at ones character in the face of logic and reason- Me

  • DSWBeefDSWBeef phoenix, AZPosts: 791Member

    Honestly who didnt see this coming? WIth Ea shares tanking and SWTOR being my personal worst mmo fo the last 5 years, its no surprise to me. Advice fire all those shitty devs for Swtor and hire a small dedicated smart team. I mean we all read the report where EA admitted they hired way to many in experiences devs instead of hiring a few excellant ones. Im actually happy indie companys can still make unqiue games such as Mount and Blade, terraria, and many more.

    Playing: War Thunder, World of Warcraft, and Grim Dawn
    Waiting on:Everquest Next and The Black Desert

  • BardusBardus Cornet, ALPosts: 460Member

    If you go to http://startupgrind.com/ the is claiming confirmed.

    "Exclusive: I’ve confirmed from multiple sources within Electronic Arts that the company is planning to layoff 500-1,000 people as soon as this week. As of March 31 public numbers, that represents between 5%-11% of total company employees. The layoffs were originally set for last Monday (4/9), but they were pushed back and we’ve confirmed they’re coming very soon.

    After a brief resurgence, EA has had a rough year with Star Wars not matching lofty internal expectations, an expensive Popcap acquisition, a CFO departure, and being recently named the worst company in America.

     

    While it looked like a possible banner year, over stretching on several fronts led to a disappointing fiscal year. Estimates put Battlefield 3 sales around 13MM units, the company ‘chased’ the launch dumping an estimated $30MM into incremental marketing after the game launched according to one source within EA. The same thing was done for Star Wars to extend its run and try to improve sales. Star Wars sell through is estimated to now be around 3MM units, but the subscriptions which are needed for an MMO to payoff are already declining.

    It’s also another big blow to EA CEO John Riccitiello who this month marked his fifth year since returning to EA. I was working at EA and sat in the all-hands meeting to mark his triumphant return in 2007. While the quality of EA games has most definitely improved, the costs to produce these games and Riccitiello’s acquisition warpath have only hurt the bleeding.

    Not to mention a stock price that has moved from $61 to where it sits now at $16, it’s safe to say that Riccitiello’s time is once again running out. On top of all this, Zynga has gutted EA’s management listing 5 of the top 11 executives as former EA senior managers including the COO, CMO, CCO (Creative), CPO (People), and the EVP of Corp Dev. Glassdoor.com puts his internal CEO rating at 53%, no where some Silicon Valley companies like Google (92%) or Yelp (89%) while similar to other CEOs in his category."

     

     

    image

  • fivorothfivoroth LondonPosts: 3,662Member Uncommon

    That really sucks for those guys. It also sucks for people who still work there. In my last company when they laid off 50-200 (not sure exactly how many) people, I heard they didn't even tell them in advance. People just came in the office and saw half of the desks in their department empty.

    What's funny though is that the company wasn't doing bad. The UK branch still continued to make about 6 billion worth of revenues and 2-3 billion profit. Why they sacked people was beyond me and no one at work wanted to tell me -_-

    Mission in life: Vanquish all MMORPG.com trolls - especially TESO, WOW and GW2 trolls.

  • OmgTryhardOmgTryhard IrelandPosts: 5Member

    Originally posted by Distopia

    Originally posted by sk8chalif

    Haha, we all saw this coming,  lucky i don't work for them anymore,

    This type of response will always boggle me, it seems somewhat sadistic IMO. To be clear I understand disliking corporations, but getting your jollies off of others loss of employment is just not right.  Most of those people are just doing what they're told to do like any other employee. You can bet most of those truly responsible will still be coming to work the next day, making as much as 10-20 of those others combined.

    Indeed +1 Distopia ,there seems to be a lot of spoiled nerds on theses forums.

  • troublmakertroublmaker St. George''s, NFPosts: 337Member

    Sad truth is in a world of digital distribution there is no room for big name publishers.  EA, Activision and THQ all became huge because all studios would pay them to distribute their games.  Now all these studios are just distributing online and bypassing them.  Activision has like, 3 titles?  EA has maybe 8-9.  THQ has like 2.

    Every single game they make is very expensive and every single one that does poorly is going to cost someone their job.  It's unfortunate but that's the reality of the game designer world.  It is not a stable industry and it is not a stable income.  Unlike many industries your job security have 100% to do with your ability to be the best in the world.

    Website: http://www.thegameguru.me / YouTube:

  • HurvartHurvart ystadPosts: 565Member

    Short term its sad. But long term its better for them if they can find better jobs working for better and more successful companies. And better for investors and customers too. The talent and hard work is wasted working for a company like EA. Since this means money is also wasted this had to happen. And the leaders should be blamed.

  • DredphyreDredphyre Los Angeles, CAPosts: 601Member

    Originally posted by ignore_me

     

    Think they are about to call Raph Koster?

    And take him away from making browser games for Facebook? lol.

  • TardcoreTardcore MinskPosts: 2,325Member

    Maybe much ado about nothing?

    UPDATE

    image

    "Gypsies, tramps, and thieves, we were called by the Admin of the site . . . "

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