EA Cutting 1500 Jobs To Reduce CostsS

Lending credence to the rumors of massive layoffs, EA details a "cost reduction plan" in its 2nd quarter financial results press release that will result in the termination of 1,500 employees.

The "Cost Reduction Plan" detailed in the EA release involves the closure of several facilities and a huge reduction in workforce in order to "narrow its product portfolio to provide greater focus on titles with higher margin opportunities."

"This action will result in the closure of several facilities and a headcount reduction of approximately 1,500 positions, of which 1,300 are included in a restructuring plan. The majority of these actions will be completed by March 31, 2010. This plan will result in annual cost savings of at least $100 million and restructuring charges of $130 to $150 million."

News of the reductions comes in the same press release that reports record non-GAAP revenue for the 2nd quarter, with $1.147 billion up 2 percent from the same time last year, surpassing street expectations.

The release also mentions EA's $300 million acquisition of social network games developer Playfish, which we reported on earlier today. One could assume this means that Facebook games have "higher margin opportunities."

The release did not name which facilities would be seeing cuts, though rumors indicate that EA Tiburon, Black Box, Redwood Shores, and Mythic are among those seeing layoffs today.