Electronic Arts to make deeper cuts, consolidate Vancouvers Black Box studio

VANCOUVER - Video game maker Electronic Arts Inc. (NASDAQ:ERTS) says it will make deeper staff cuts than originally planned and will consolidate facilities, including moving its Vancouver-based Black Box Studio to nearby Burnaby.
Redwood City, Cali-based Electronic Arts, also known as EA, said it will now cut 10 per cent of its workforce, or about 1,000 jobs - a four per cent increase from a previous announcement made in October.
EA said the restructuring plan will save it about US$120 million annually. It will also take restructuring charges of approximately US$55 million to US$65 million over the next several quarters.
The cuts will be completed by the end of March.
EA spokesperson Colin Macrae said there has been no final decision made yet on where the layoffs will happen.
The company has about 2,500 employees in Canada, about 1,700 of which are in Vancouver's Lower Mainland, and the rest in Edmonton and Montreal.
He said all of the Vancouver staff will be moving to Burnaby along with its Black Box studio, which is known for the popular driving game "Need For Speed."
EA recently lowered its 2009 revenue and earnings expectations, citing a drop in sales across North America and Europe.
In a release Friday, EA said its restructuring is part of a plan to "narrow its product portfolio to focus on hit games with higher margin opportunities."
However, EA said it "remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers."
The extra cuts announced Friday come a week after EA cancelled plans to expand into a new video game development studio in Vancouver.
The company cited slow holiday sales and concerns about the global economy.
14:17ET 19-12-08