April 26th, 2013 10:43 AM
SAN FRANCISCO–Electronic Arts on Thursday said that more layoffs were in store at the console videogame titan as it adapts to the popularity of play on smartphones, tablet computers and online social networks.
“In recent weeks, EA has aligned all elements of its organizational structure behind priorities in new technologies and mobile,” the California-based company said in a blog post.
“This has led to some difficult decisions to reduce the workforce in some locations.”
EA referred to the latest round of layoffs as “hard but essential changes.”
EA did not specify the number of workers being let go, but videogame news website Kotaku cited unnamed sources saying the company would cut employee ranks by 10 percent.
In March, EA chief executive John Riccitiello stepped down.
EA veteran Larry Probst was appointed to lead the company’s executive team while the board of directors searches for a replacement for Riccitiello, whose tenure as chief executive began in 2007.
EA is among the longtime videogame industry companies striving to adapt to an industry being transformed by the popularity of free play on smartphones, tablet computers and online social networks.
While announcing Riccitiello’s departure, EA warned investors that its earnings for the quarter could be slightly lower than estimates provided at the end of January. EA is to report its quarterly earnings on May 7.
Last week, EA announced that it will “retire” some Facebook games that seem to have fallen out of favor with players at the leading social network.
EA said that ‘The Sims Social, ‘SimCity Social’ and ‘Pet Society’ will be taken offline on June 14.
“After millions of people initially logged in to play these games, the number of players and amount of activity has fallen off,” EA said in a release.
EA continues to make games for use on Facebook, noting the upcoming release of Bejeweled, Solitaire, and Plants vs. Zombies titles from its PopCap studio.