EA Loses $641M Over Holiday Quarter, Increases Layoffs, Closures

Electronic Arts announced today that its quarter ending December 31 saw a massive loss, totaling $641 million. EA John Riccitiello called the lower than expected earnings "a clear disappointment," announcing additional, extended layoffs.

The company will increase the number of jobs cut to 1,100, up from 1,000, or 11% of its total workforce. It expects approximately 75% of those layoffs to be completed by the end of March 2009. EA will also close more of its facilities than previously planned, announcing that the nine locations it previously planned to consolidated would increase to twelve.

Yes, that means you'll see more "Disturbance in the Workforce" posts for longer than expected.

The company will cut staff at all levels, according to EA execs, including "managers, directors, VPs and above" and put a freeze on raises. It will also cut 30% of its SKUS in 2010, expecting to publish 50 titles across 125 SKUS. The company published 145 SKUs in fiscal 2009.

It announced delays to upcoming marquee titles The Sims 3 and Dragon Age: Origins alongside its quarterly earnings results.

EA's total take for the holiday quarter was $1.74 billion, which was driven by sales of games like FIFA 09, Rock Band 2, Need for Speed Undercover, Rock Band, Left 4 Dead, Dead Space, Madden NFL 09, Littlest Pet Shop, NBA Live 09 and Mirror’s Edge.

EA Reports Third Quarter Fiscal Year 2009 Results [Yahoo!]