Electronic Arts Layoffs Imminent
Electronic Arts on Monday confirmed that it was planning to lay off an undisclosed number of staff members citing the need to consolidate positions after recent acquisitions.
Published: March 21, 2001
Electronic Arts on Monday confirmed that it was planning to lay off an undisclosed number of staff members citing the need to consolidate positions after recent acquisitions.
One source close to the company said the job cuts could take place later this week, but an Electronic Arts spokesman declined to comment on the timing. Positions will be eliminated from Electronic Arts' online division, EA.com and game development studios, Electronic Arts spokesman Jeff Brown said.[blockquote]"There's going to be some consolidation, but it won't be big in terms of Silicon Valley layoffs," said Brown.[/blockquote]He said the company's headcount at the end of the year will likely be the same as the previous or slightly higher. Electronic Arts recently acquired gaming site pogo.com for $42 million, and at that time told those who asked that the investment could require some consolidation. Analysts appeared unconcerned with the pending layoffs announcement.
[blockquote]"I don't think its negative for Electronic Arts. Their business is strong and they only have growth ahead of them. I'm sure the layoffs have to do with duplication with (acquiring) pogo.com," said Lehman Brothers analyst Felicia Kantor.[/blockquote]Shares of Electronic Arts closed up $3 or 6.3 percent to $50-3/8 on the Nasdaq.
One source close to the company said the job cuts could take place later this week, but an Electronic Arts spokesman declined to comment on the timing. Positions will be eliminated from Electronic Arts' online division, EA.com and game development studios, Electronic Arts spokesman Jeff Brown said.[blockquote]"There's going to be some consolidation, but it won't be big in terms of Silicon Valley layoffs," said Brown.[/blockquote]He said the company's headcount at the end of the year will likely be the same as the previous or slightly higher. Electronic Arts recently acquired gaming site pogo.com for $42 million, and at that time told those who asked that the investment could require some consolidation. Analysts appeared unconcerned with the pending layoffs announcement.
[blockquote]"I don't think its negative for Electronic Arts. Their business is strong and they only have growth ahead of them. I'm sure the layoffs have to do with duplication with (acquiring) pogo.com," said Lehman Brothers analyst Felicia Kantor.[/blockquote]Shares of Electronic Arts closed up $3 or 6.3 percent to $50-3/8 on the Nasdaq.