Electronic Arts Stumbles on Layoffs
The video game publisher declined to specify the number of staff reductions or at which studios the layoffs had taken place. This is the third year in a row that Electronic Arts has had seasonal layoffs.
"As you know, seasonal roll-offs that follow game launches are common and vital to maintaining a healthy business," said Electronic Arts spokesperson Jeff Brown. "Because so many of our games ship in the holiday quarter, the team size adjustments tend to follow in the same timeframe. However, EA is growing and several of our studios are looking to hire talented people."
Shares were down 0.76% in early afternoon trading Thursday to $15.67.Earlier this week, social gaming company Zynga, maker of FarmVille, eclipsed Electronic Arts in valuation, according to SharesPost, an exchange for shares of privately held companies. Zynga is worth about $5.5 billion while Electronic Arts is valued at around $5.2 billion. Traditional video game companies like Electronic Arts have had difficulty transitioning from a retail-focused model to digital distribution. EA also faces new competition from social gaming companies which have lower development costs and higher profit margins. EA is expected to announce second quarter earnings on Nov. 2. --Written by Olivia Oran in New York.
>To follow the writer on Twitter, go to http://twitter.com/Ozoran. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV