EA cuts to reduce workforce by 10 per cent, says CFO

EA CFO Blake Jorgensen has confirmed that the company's ongoing efforts to streamline operations will result in a 10 per cent cut to its workforce.

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EA has been streamlining its business in recent months, resulting in a major layoff operation as it bids to 'sharpen its focus to provide games for new platforms and mobile'. John Riccitiello resigned as EA CEO in March.

The publisher endured more major staff cuts in April, with unconfirmed reports at the time suggesting that as much as 10 per cent of its workforce had been laid off.

While EA's plans for further cuts are unclear, during an earnings call today Jorgensen made note of significant staff streamlining and millions of dollars in severance payments related to the changes.

EA Q4 Results:

• Battlefield 3 Premium passes 3.5 million subs
  
• FIFA 13 sells over 14.5 million
  
• SimCity sales pass 1.6 million since launch
  
• No EA Star Wars games before April 2014
  
• EA promises 'great reveal at E3'

"Operating Expenses for the quarter were $540 million, $15 million higher than our guidance," he said. "We were above guidance due to charges associated with operating expense reduction actions and costs associated with the resignation of our CEO. Our cost reduction plans will reduce our overall headcount by approximately 10 per cent," said Jorgensen.

The CFO went on to note that some $16 million in severance costs "related to these actions" contributed to its FY2013 operating expenses, with "approximately" a further $25 million factored into its FY2014 guidance.

"The majority of this expense will be recognized in the first quarter," said Jorgensen. "These payments relate to our Q1 efforts to reduce operating expenses as part of our goal to expand our operating margins."