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EA cuts 6% of workforce, posts quarterly loss

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EA has posted a second quarter loss of $310 million, or 97 cents per share, the second in its fiscal year.

That was worse than the loss of $195 million, or 62 cents per share, a year earlier.

Sales jumped 40 percent to $894 million.

Highlights for the period were Madden 09 at 4.5 million units, Spore at nearly 2 million units and Warhammer Online at and 1.2 million copies.

The company said it is to drop 6 percent of its workforce, amounting to between 500 and 600 jobs. While some of these jobs are open, most will involve layoffs.

"Considering the slowdown at retail we've seen in October, we are cautious in the short term," said EA boss John Riccitiello.

"Longer term, we are very bullish on the game sector overall and on EA in particular."

The market reacted accordingly to the news. EA shares sank $4.03, or 14.5 percent, to $23.70 in after-hours trading. The stock had closed down 31 cents at $27.73.

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Patrick Garratt avatar
Patrick Garratt is a games media legend - and not just by reputation. He was named as such in the UK's 'Games Media Awards', the equivalent of a lifetime achievement award. After garnering experience on countless gaming magazines, he joined Eurogamer and later split from that brand to create VG247, putting the site on the map with fast, 24-hour a day coverage, and assembling the site's earliest editorial teams. He retired from VG247, and the games industry, in 2017.
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