'Cost reduction initiative' comes as sales and losses increase for last quarterEA has announced that it is to cut six per cent of its global workforce, equivalent to between 500 and 600 positions, following increased losses in the financial quarter ending September 30th.
The AP reports that the cuts will span all aspects of the company and will be spread across the firm’s global workforce. EA hopes to save around $50 million per year as a result.
Speaking to Kotaku, EA spokesperson Mariam Sughayer revealed that the move will also involve a freeze on hiring new staff. "We have begun a cost reduction initiative which will include eliminating approximately six percent of our existing workforce - or approximately 600 positions. We will also reduce hiring and close some open positions that we had previously planned to fill this fiscal year."
"All parts of EA have reviewed their team sizes to adjust employee numbers. The goal is to ensure we're resourced in a way that allows us to continue to grow our revenues while at the same time keeping our costs under control and improving profitability. These changes will be announced to affected staff starting October 30."
Shares in the company have so far fallen 14.5 per cent following the news.