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EA plans redundancies, drops 12 games

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EA plans redundancies, drops 12 games
Electronic Arts has confirmed plans to make 1,500 employees redundant by April next year and also drop 12 development projects to save on costs.

The firm will cut 900 jobs from its studios operation, along with 500 from the publishing business and 100 from corporate positions to achieve an annual saving of around $100 million (£59m).

Studios most likely affected by the cuts include EA Redwood Shores, Mythic, Black Box and Tiburon, reports GamesIndustry.biz.

The announcement follows EA's financial report for the period up to September 30, in which the firm posted a net loss of $391 million, up by 26% on the same period in 2008.

"Laying off employees and closing facilities is never pleasant. We have a lot of compassion for those impacted but these cuts are essential for transforming our company," said EA chief executive John Riccitiello.

"Our operating expenses will be reduced by at least $100 million compared to our current run rate."

Riccitiello also revealed plans to drop 12 previously unannounced development projects in a further effort to cut back on operational costs.

"Electronic Arts has a core slate of games label and sports franchises that we will iterate on a either annual or bi-annual basis. And I think you know what those major titles are - all of them are selling or have sold in their most recent edition two million units or more," he explained.

"After that, we've got The Sims and Hasbro, and frankly anything that doesn't measure up to looking like it can pencil out to be in very high profit contributor and high unit seller [will get] cut from our title slate from this point going forward."

Yesterday, EA confirmed its acquisition of social games developer Playfish in a deal worth around $275m.

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