Losses, layoffs in EA's Q2 earnings report
by JC Fletcher 
on Nov 9th 2009 5:50PM
EA
announced a net loss of $391 million in its Q2 2010, which ended September 2009. The losses have increased from
last year's $310 million. In addition, sales, at $788 million, are down $106 million in Q2 2010 from the same period last year. EA CEO John Riccitiello remains positive about EA's outlook, explaining, "EA is performing well, with quality, sales and segment share up so far this year." CFO Eric Brown echoed Riccitiello with his own confusingly half-upbeat statement, saying "We met our second quarter expectations and delivered a record quarter for revenue. Today we are announcing a significant cut in our operating expenses and the acquisition of a leader in social games, Playfish."
Those cuts, revealed
earlier today, will result in the loss of around 1,500 jobs by March 31, 2010.
Last year's restructuring planned only 1,000 layoffs. EA estimates that the restructuring plan will save around $100 million after about $130 - 150 million of restructuring costs. We hope that, this time, the company arrives at a structure that works.
