EA cuts 6% of workforce, posts quarterly loss

By Patrick Garratt, Thursday, 30 October 2008 21:39 GMT

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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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