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Only hours after they proudly announced their Playfish acquisition, Electronic Arts has revealed that they will be cutting 1,500 jobs for their impending “Cost Reduction Plan”.

The corporation has been hit hard by the economic downturn, and has already severed its ties with Pandemic Brisbane, and merged developers BioWare and Mythic Entertainment into one unit.

Read on to find out why such a reduction of staff has been deemed necessary.

“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,” read EA’s official release statement.

“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.”

While no specific subsidiaries were named in the release, rumors are running rampant that EA Tiburon, Redwood Shores, and Mythic have all been affected by the layoffs.

Source: 1UP

  1. I’m gonna pour out a little of my beer for these folks tonight. :(

  2. I am not surprised about the BioWare/Mythic merge. I know from my research into the Old Republic, that BioWare took on many people from Mythic to aid the size of the team.

    Since Mythic have not been doing so well lately, it makes sense just to move them across to a stronger developer. It’s never nice to see developers go downhill though. :(

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