Layoffs Send Shockwaves Through EA

[Update] EA has made it official via their recent fiscal release that they are indeed launching a "Cost Reduction Plan" designed to cut $100 million in yearly expenses. 1,500 jobs will be eliminated as a result, most by March 31, 2010. Specific studios were not mentioned. EA said it intends to "narrow its product portfolio to provide greater focus on titles with higher margin opportunities," but the company did not specify which games might get cancelled.  The plan will lead to restructuring charges of $130 to $150 million.

"We are making tough calls to cut cost in targeted areas and investing more in our biggest games and digital businesses," said EA CEO John Riccitiello.

[Original Story] Layoffs are an unfortunate reality in today's economy, and even larger studios are not immune. Case in point, Gamasutra is reporting that Electronic Arts is planning significant layoffs in their Redwood Shores, Tiburon, Mythic, and Black Box studios.

Sources close to the situation indicate that these layoffs are "substantial" and will likely be announced during EA's quarterly fiscal report. A Mythic employee indicates that 80 people, or as much of 40 percent of Mythic, have been let go.