Job lynchings at EA to save publisher "approximately $50 million"
Posted: 03.11.2008 11:57 by Simon Priest Comments: 8
The money doesn't lie. EA's latest financial quarter saw a nasty jump in losses compared with last year; it now stands at $310 million.

The publishers response was to enacted their "cost reduction plan", which is fancy wording for workforce "elimination". This plan booted out 6% of staff which is about 600 jobs.

600 jobs = $50 million. The money doesn't lie. "Considering the slow down at retail we've seen in October, we are cautious in the short term," said CEO John Riccitiello.

"Longer term, we are very bullish on the game sector overall and on EA in particular. The industry is growing double-digits on the strength of three new game consoles and increases in the number of homes with broadband internet connections."

This also means there won't be many new positions opening within the company for a while as they 'trim the fat'. Let's hope this short term strategy will help many more keep their jobs in the long term Mr Riccitiello.

Any news of a voluntary cut to executive salaries? No? That's odd.

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By Kres (SI Elite) on Nov 03, 2008
Hits the big boys the most it seems. It still appears to have less impact then the great depression had. Hopefully the worst has passed, and I try not to doubt it.
By Orv (SI Core) on Nov 03, 2008
No worries, the problem has been over-amplified and 'probably' influenced by the presidential election in the US.
If I had to hedge any bets, I would be willing to bet that things will appear much rosier come around inauguration time.

Just the opinion of one extremely simple and unqualified individual.
By ScythSoulces (SI Core) on Nov 03, 2008
You might be on something Orv on it Probably being influenced by the election.
By herodotus (SI Herodotus) on Nov 03, 2008
Unfortunately, I believe the election is the only thing keepings things in the black at present. The UK is in Recession, China and India are facing the same as is Australia. The US, as Analysts have said, is sure to follow post-election. Not a good sign of the times at all. Doesn't take much more than a run on the banks and stocks & bonds to induce a Depression, and this is the worst state of the global economy since 1929 (and the worst for North America since 1979). Things are going to get worse before they get better.
By Kres (SI Elite) on Nov 03, 2008
I think this is a lot more serious and harder to get out of Orv. If my dear Obama wins, stock markets will immediately go up. Though would probably be a minor effect. It's just investors that are selling all stocks around and things are crumbling down. They need to feel more secure. But of course, it isn't as simple as that either. We're in deep sheet.
By ScythSoulces (SI Core) on Nov 04, 2008
First off, you mean deep shit. Secound Obama is going to destroy this country by bringing up tax's and puting us in the hole.
By herodotus (SI Herodotus) on Nov 05, 2008
Tax increases are already occurring world-wide Scyth, and won't stop anytime soon. What we really need the public to do is slow down on credit card spending. Its' killing the economy, and ruining people's private finances.
By Kres (SI Elite) on Nov 05, 2008
Well I hope he wont. We all got to know him via his campaign run, which other people devised. So now we get to really see what he's capable of. His winning speech was great, but course not his doing.

What I like for starters is that US stocks went up 3.5% as soon as he won. So that's the first good sign. Now to see about the rest...