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EA cut jobs at 007 studio Redwood City

03-Feb-2006 • Gaming

Electronic Arts, the world’s largest video game publisher based in Redwood City, will lay off 145 workers from its local campus in coming weeks as part of a transition into new consoles for its games. The facility is home to the James Bond videogame franchise.

The company notified San Mateo County of the pending changes as required by all local companies expecting mass layoffs. Electronic Arts confirmed the layoffs but isn’t releasing specific numbers of positions affected - reports the San Mateo Daily Journal.

“You can assume the number you heard is correct,” said Trudy Muller, senior manager of corporate communications for Electronic Arts.

Muller added the jobs are a “relatively small percentage” of the company’s global workers. She estimates EA employs between 6,500 and 7,000 people globally and 1,600 at its Redwood City campus.

According to EA’s Web site, it operates development studios throughout the United States, Canada, Japan and England. The sales staff extends even further worldwide.

Every business unit was reviewed to winnow down layoffs and focus on “people, technology and investments,” she said.

In December, the company downgraded its fiscal outlook because of slow holiday sales. In October, the company also agreed to pay $15.6 million to settle a class-action overtime lawsuit.

However, the layoffs are not a cost savings move but are part of an industry-wide move into new game consoles and systems, Muller said.

The layoffs are also not a sign the company has plans to uproot from Redwood City or the state, she said.

“We recognize there is an incredible amount of talent here and we have no plans to stop making games here,” Muller said.

Electronic Arts reports earnings after the market close today. The company had warned its third quarter and fiscal year profits and sales would be “well below” previous estimates.

Thanks to `` for the alert.

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