Electronic Arts laid off about 900 employees during restructuring

About 900 people were laid off during Electronic Arts' "organizational restructuring," a process that in the short term cost the company about $16 million, company officials announced in their earnings call yesterday.

During the earnings call, Blake Jorgensen said the company reported $540 million in operating expenses for the fiscal quarter. This was $15 million higher than the company expected due to charges associated with "operating expense reduction actions," including the layoffs, and the resignation of CEO John Riccitiello in March. Of the total operating expenses, $16 million of its operating expenses were related to the restructuring, he said.

Jorgensen said EA's cost reduction plan would "reduce our overall headcount by approximately 10 percent."

The company's worldwide headcount prior to the layoffs was about 9,000. The layoffs were part of a company-wide restructuring aimed at reducing costs.

Last month EA shuttered PopCap Vancouver and Quicklime Studios, laid off hundeds of employees and shut down the EA Partners Program, a service providing publishing contracts for indie studios. Earlier in April, employees were laid off from EA's Montreal-based mobile development studio, and in February EA let go staff at its Montreal and Los Angeles studios as part of the "console transition."

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