Electronic Arts to Shut Down 12 Offices

EA’s third quarter fiscal year report brings some grim news, as 12 facilities are scheduled for closure and 1100 jobs are to be purged. There are no details on which studios are affected, though.

(Our holiday quarter came in below our expectations and we have significantly reduced our financial outlook for fiscal 2009, a clear disappointment,) said John Riccitiello, Chief Executive Officer. (We delivered on game quality and innovation in calendar 2008, with 13 titles rated 80 or above — more than any third-party publisher. We expect to build on this great quality record in the year ahead while delivering more profitability.)

As a part of an overall cost reduction program, the Company is reducing its workforce by approximately 11%, or 1,100 people, closing 12 facilities, narrowing its product portfolio and cutting other variable costs. The Company expects to incur total restructuring charges, including severance and facility closures, of $65 to $75 million, which will be recorded over the next twelve months.
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Warhammer® Online: Age of Reckoning®, an MMO from EA’s Mythic Entertainment studio, ended the quarter with over 300K paying subscribers in North America and Europe.