EA drops 1,500 jobs as Activision trumpets Modern Warfare 2

by Stevie Smith - Nov 10 2009, 04:30

While game publisher Activision Blizzard is drowning in the tsunami of cash presently being produced by sales of (Call of Duty) Modern Warfare 2, industry rival Electronic Arts (EA) is busy adjusting its business to better stave off the persistent pressures of recession.

Moreover, the third-party publishing heavyweight has this week revealed plans to hack down its global workforce by a whopping 17 percent, which equates to the imminent loss of around 1,500 jobs.

According to California-based EA, the decision to downsize its staff allocation has been made as part of the company’s ongoing “cost reduction plan,” which is aimed at providing “greater focus on [videogame] titles with higher margin opportunities.”

The impact of EA’s sweeping job cuts will also see the publisher shutting the doors of “several facilities,” with the majority of its restructuring actions likely to be in place by the close of March 2010.

“This plan will result in annual cost saving of at least $100 million and restructuring charges of $130 to $150 million,” outlined EA in an official release.

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