EA To Cut 500 Jobs

By Digital Trends Staff November 3, 2008

EA To Cut 500 Jobs

Electronic Arts might publish some of the most popular video games, but it’s not immune to the financial hard times that are around. After warning that profits will be lower than expected, it said that it will be shedding over 500 jobs, about 6% of its work force, the BBC reports. On the announcement EA saw its share price tumble 20%, closing at $22.78.

EA blamed higher development and marketing costs, as well as delays to the new Harry Potter game, although it said both Spore and NFL 09 has been successful.

Heading into what should be the biggest sales season of the year, EA’s chief executive, John Riccitiello, was careful in his assessment:

"Considering the slowdown at retail we’ve seen in October, we are cautious in the short term. Longer term, we are very bullish on the game sector overall and on EA in particular."

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