Monday, April 15, 2013
EA confirms layoffs as it seeks new CEO
Story originally appeared on USA Today.
Video game publisher Electronic Arts confirmed it will lay off an undisclosed number of employees as it continues its search for a new CEO.
In a statement released Thursday, EA says the "streamlining" is part of an effort to transform in an industry experiencing significant change with the rise of smartphones and tablets as well as the impending arrival of fresh home video game consoles.
"EA is sharpening its focus to provide games for new platforms and mobile," reads a statement from the publisher. "In some cases, this involves reducing team sizes as we evolve into a more efficient organization. These are difficult decisions to let go of good people who have made important contributions to EA, and whenever possible we retrain or relocate employees to new roles."
The publisher did not reveal how many employees were affected.
The layoffs follow the departure of CEO John Riccitiello, who stepped down on March 30 after assuming the role in 2007. "I am proud of what we have accomplished together, and after six years I feel it is the right time for me pass the baton and let new leadership take the Company into its next phase of innovation and growth," said Riccitiello when announcing his exit last month.
Former CEO Larry Probst will take over as interim CEO until a replacement has been hired.
The transition at EA arrives as the video game industry prepares for a new wave of home video game consoles. In February, Sony unveiled the PlayStation 4, while reports suggest Microsoft will share the first details of its next Xbox console in May.
More details will likely be revealed at video game industry showcase E3, the Electronic Entertainment Expo, in Los Angeles in June.