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EA’s Q2 earnings: $391 million net loss, 1500 laid-off

Tuesday, 10th November 2009 03:06 GMT By Nathan Grayson

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EA released its Q2 earnings report today, and – as you can probably guess – it wasn’t exactly written on gilded paper. Net losses continue to pile up, now sitting at $391 million – a fairly substantial increase over last year’s $310 million. As the stinging cross in this bank-breaking combo, sales are also down at $788 million, compared to last year’s $894 million. EA CEO John Riccitiello, however, insists that the situation is under control.

“EA is performing well, with quality, sales and segment share up so far this year,” he said. “We are making tough calls to cut cost in targeted areas and investing more in our biggest games and digital businesses.”

“Tough calls,” indeed. EA also confirmed that it’s laying-off 1500 employees as part of a “cost reduction plan.” This confirms earlier rumblings that EA was getting ready to cut a few employees loose. Well, except for the “a few” part.

Best of luck to all affected.

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5 Comments

  1. Uncontested

    Maybe if they didn’t blow 300 million on some sh!t company nobodies ever heard of they’d only be 91 million in the hole.

    #1 5 years ago
  2. blackdreamhunk

    them consoles are burning up game devs

    playfish is making money it’s the very reason they bought them.

    you know why they are losing money them consoles

    #2 5 years ago
  3. freedoms_stain

    Well ya see Uncontested the 300 mil spent on Playfish has more perceived value to the fat-cats who run the EA brand. They only really care about what makes the most money, and if the 300 mil invested in Playfish is predicted to make more money in say 5 years than the combined efforts of those 1500 staff, then it’s an easy choice to destroy 1500 livelihoods now so they can increase their own bonuses in 5 years time.

    #3 5 years ago
  4. Nelius

    nvm…

    #4 5 years ago
  5. Nelius

    #5 5 years ago

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