In order to slash rising costs, Electronics Arts has announced to lay off its 11% workforce that comes to nearly 1100 jobs.
The announcement was made considering the low earnings of the company during the third-quarter.
Electronics Arts has been talking about staff reduction since October 08, and the current announcement came as a final word on it.
According to EA, it was considering letting 6% staff go, but in December that number raised to 10% or nearly 1000 jobs.
EA is quite well-known as the largest publisher of video games in the world and it has announced to close down its 12 facilities in order to cut rising costs and it would help the company to incur between $65m to $75m reformation charges.
The company said that the closing of studios and job’s layoffs to be completed by the end of next month. EA is considering reducing operating expenses nearly $500m in the financial year 2010.
Despite the overall economic slowdown worldwide, the video gaming industry has been performing quite well and has proved somewhat recession-resistant in the days of worldwide economic gloom.
But most of these companies are trying to stay more competitive and taking various steps in this connection. Microsoft is another company who has slashed staff from its Microsoft Game Studios.
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