EA looks to low-cost development markets

EA looks to low-cost development markets

By Rob Crossley

August 5th 2009 at 12:49PM

20 per cent of current workforce based in cheap labour regions â?? and publisher wants more

Electronic Arts has revealed that around one fifth of its global business - which includes development studios - now resides in low-cost areas.

The publisher, which has in recent months exercised substantial job cuts in a bid to plug hemorrhaging costs, said in its quarterly financial report that it is looking to increase its reliance on low-cost areas.



“In terms of the low cost employee composition, it’s at 20 per cent as of the end of the quarter," said EA CFO Eric Brown.

"We are looking to increase that a bit over time,” he added.

“We’re finding that for certain areas of our business - for example, mobile - lends itself well to having headcounts at lower cost locations, given the diversity of platforms, so that’s worked out extremely well for us in that business and it’s success we’d look to replicate further.”

The firm also announced during its earnings call that it has axed 158 staff in three months, as part of wider cost-saving measures laid out at the end of 2008.



Back in December, EA pledged to reduce its workforce by 1,000 people in a bid to save the publisher £80 million annually.

“We executed on our cost reduction plans and are largely done with our announced restructuring as of the end of Q1,” added Brown.

“Approximately 92 per cent of the headcount reductions were completed and we ended the quarter with 8,948 employees, versus 9,106 last quarter.”