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Submitted by -Mezzo- 1023d ago | news

Here's The Memo EA Sent Employees During Today's Layoffs

Kotaku - EA laid off a whole bunch of staff today, and temporary CEO Larry Probst sent out a letter to employees that Kotaku has just obtained. (EA, Industry)

majiebeast  +   1023d ago | Well said
I wish everyone who lost their job the best of luck and hope they find a great new place to work.

They fire the good people(Developers including a 13 year veteran at Bioware) and they keep tools like, Frank everyone wants facebook in their games Gibeau.

Richitello probably still got his golden handshake for his services. Gotta love captitalism.
#1 (Edited 1023d ago ) | Agree(49) | Disagree(10) | Report | Reply
guitarded77  +   1023d ago
Well said...

On Topic: I thought this line was messed up "executive team develop a FY14 operating plan that drives growth, rationalizes headcount and controls costs". How crappy is it to lose your job and them say "we were just rationalizing headcount"? F the suits.
HappyGaming  +   1022d ago
But an organisational structure with more people then required creates a slower and more bothersome environment to work in.

Sometimes suits have to let people go even if they are losing talent just to streamline the departments.

Firing people can also move a structure to a less bureaucratic system.

Lets hate on EA but the suits in that company are doing their job right. Please reply if you disagree.
Gaming101  +   1022d ago
It is good to fire people if you want a short term boost in profit due to the lack of salaries you have to pay out, however data shows that this doesn't work to boost profit in the long term. This idea that it creates a bothersome working environment is complete spun nonsense from Public Relations people writing on behalf of CEO's.

In reality, when you lay off your best employees, it creates a sinking ship mentality. This is where the highest quality employees are afraid to lose their jobs when a company claims to be "creating a more efficient working environment". What happens is the higher quality employees leave the company as their skills are highly marketable. The only people who stay with your company are those that don't have good, marketable skills, and so you are left with a company with sub-par talent.

Getting rid of all that great talent was typical American business practices, where executives are afraid they'll not get as big a bonus this year (usually millions of dollars). This is done to get a couple of years of obscenely high bonuses due to cutting all your staff, it artificially raises your profits due to gutting your costs, then guess what? The executive leaves the company after making all that money. They almost always do, after a few years of CEO bonuses they have no need to work anymore as they have made several million dollars, and they couldn't give two shits if the company tanks after they have left, they already made their money. You will usually find them getting hired at a different company to temporarily boost that company's profit to appease shareholders, only he'll gut the company and do the same thing all over again.

What EA should have done was created more projects and utilized all that great talent. This would have boosted revenues and instilled a better corporate culture, where people aren't afraid of losing their jobs every time the CEO wants a bigger bonus, or is afraid of losing his bonus. Instead, they decided to gut the company to cut costs. Just watch, as you always see executives leave companies within 1-3 years, you'll see an executive change in no time. EA did already get a new guy in charge if I remember correctly, and this is the result.
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yeahokchief  +   1022d ago
If you don't like it then don't buy it.
1nsomniac  +   1022d ago
That doesn't even make sense, I think you left your auto-response left on...
yeahokchief  +   1022d ago
if you dont like my comment then dont read it
ThanatosDMC  +   1022d ago
Lol! Nice comeback. HAHAHAHA! Funniest comment today.
jerethdagryphon  +   1022d ago
golden handshake is coming on board =signing bonus
golden parachute is when you leave =big pension and stuff
Droidbro  +   1022d ago
@Majiebeasts "gotta love capitalism" Why are you trashing capitalism? Do you hate video games?
#1.4 (Edited 1022d ago ) | Agree(1) | Disagree(1) | Report | Reply
cindy77ladner   1022d ago | Spam
brenda88berry  +   1022d ago
Since I freelance I've been bringing in $90/h… I sit at home and I am doing my work from my laptop. The best thing is that I get more time to spent with my family and with my kids and in the same time I can earn enough to support them... You can do it too. Start here>>>>>>&g t;>>>>>
Agent_hitman  +   1023d ago | Well said
I feel bad for those people who lost their jobs at EA's hand.
Crazay   1023d ago | Offensive
Wagz22  +   1023d ago
Wow really to all the disagrees?! So your happy that they lost their jobs? I guess when your 12 and immature and don't have a job its hard to feel empathy...
sackboyhappy  +   1023d ago
i think there's some weird people on here that disagree with comments without even reading them 1st just to anoy people.
kreate  +   1023d ago
Depends.. sometimes its not the comment thats the problem, it also depends on who is making that comment.

I dont have any problems with agent_hitman. But considering he has 1 bubble, most likely he offended someone prior,thus he might get disagrees to something that typically wouldnt have disagrees with.
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Tultras  +   1023d ago
#2.2.3 (Edited 1023d ago ) | Agree(3) | Disagree(3) | Report
Tr10wn  +   1022d ago
yeah some people just look for keywords like "EA" you said EA ill disagree with you, that how N4G work.
Kaneda  +   1022d ago
Probably Activision fanboys...
lonesoul65  +   1022d ago
People don't disagree to the losing of jobs. It is how it is worded. "at EA's hand" is kind of adding a little something to create a reaction. It sucks to lose your job, but that is life and business. You want a better EA? Stop picking at every move they make, this might be one step in the right direction for the company.
TheUndertaker85  +   1022d ago
Actually I'm thinking something a little odd, but hey.

So, three quarters of the users here don't like EA, the games they release, or most of the developing companies under EA due to how they handle titles. While I won't claim I'm one of those people nor will I say that this move will help better EAs name, wouldn't it also mean that part of the EA you all despise is on their way out the door?

Just saying. Some people seem to have this illusion that EA is somehow a living, breathing thing by itself without a shred of humanity in it. Then people get laid off like this and it's instantly: "Oh, poor them. EA is so terrible." while they disregard the fact that those people being laid off were a part of the problem to begin with.
KONAAs  +   1022d ago
u say you feel sorry for their jobs lost, but i bet your one of the people that get mad for the online pass code, the irony
jdaboss   1022d ago | Personal attack | show
TheMailman  +   1022d ago
KONAAs I like your nickname..
#2.3.2 (Edited 1022d ago ) | Agree(0) | Disagree(0) | Report
DragonKnight  +   1023d ago
What I got from this was...

"Hey, this is what we're going to be doing this year. Yeah, it's super exciting and it's going to be great. Here's the thing... you're not going to be a part of it. But wow is this going to be a great year for us."

And that is in keeping with every single statement every executive at EA has ever made, especially Peter Moore's recent statements surrounding microtransactions, Origin, and when EA was nominated for the worst comapany in America. It's all about them, what they want, and screw everyone else.
Bimkoblerutso  +   1023d ago
Yeah, that would piss me off SO much getting a letter like that.

"Thanks for all your hard work in insuring our continued get the HELL out."
NonApplicable  +   1022d ago
Try not to be so cynical. Businesses often need to lay people off to sustain themselves.
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nukeitall  +   1022d ago
As a business owner, I can say that often times we have to get rid of the bad apples. In addition, if business isn't going to well, that suggest the people involved isn't doing a very good job.

What most "working" people don't get is that, you are only worth what you produce in value back to the company.

It isn't as simple as "I put x hours then I should get paid y amount".

If you do that, you are likely to keep your job a lot longer and advance while your at it.

Now, keep that advice, bookmark this page and when you get successful because of my wisdom, than reward me! :D

Bottom line is, when your own money is on the line, things rapidly change. It happens to everyone, every single time.

It's easy to spend others money, way harder when it is your own!

After all, loosing a job means lost wages....
DragonKnight  +   1022d ago
@NonApplicable: "Try not to be so cynical. Businesses often need to lay people off to sustain themselves."

This is different. EA is being patronizingly insulting. The memo talks about how they'll keep going forward to do amazing things. A person being fired doesn't care about that. They care about where their next pay check is going to be coming from, why they lost their job in the first place, and if it's their fault. But EA doesn't give a damn about that.

@nukeitall: "As a business owner, I can say that often times we have to get rid of the bad apples. In addition, if business isn't going to well, that suggest the people involved isn't doing a very good job."

In EA's case, neither is applicable. And I also take issue with the fact that you claim that if business isn't going well that it suggests that the employees aren't doing a good job. There are many factors that contribute to poor business including, and most often, poor management and business models.

For EA it's a known fact that they over staff. There's no job security in an environment like that with poor management and ridiculously infeasible long term business models.
Bobby Kotex  +   1022d ago
@nukeitall you have no idea why mass layoff happen. It's all about immediate numbers. Laying off the staff will reduce overhead, and show some dollar signs on paper for the investors. More often than not, it hurts the company in the long run. That's why after mass layoffs many companies start hiring back up again the next quarter.

And don't try to compare your mom and pop shop to a large corporation like EA.
nukeitall  +   1022d ago

"There are many factors that contribute to poor business including, and most often, poor management and business models."

So why do you have a poor business model? Because of management? Well, then what is management, but staff!?

A well run company has good staff, and good staff will find a way for a company to survive. A poorly manage company will do the obvious.

Point being, management is also staff!

@Bobby Kotex:

"It's all about immediate numbers. Laying off the staff will reduce overhead, and show some dollar signs on paper for the investors. More often than not, it hurts the company in the long run. That's why after mass layoffs many companies start hiring back up again the next quarter."

It's called pruning, and you lay off the bottom feeders and re-hire fresh and eager new employees.

It generally doesn't hurt the company at all and actually helps. It is only a problem if you are too aggressive.

"And don't try to compare your mom and pop shop to a large corporation like EA."

At this point we are actually a mid-size company now, but our problems aren't much different than a larger corporations division except a lot more responibilities for everyone.

However, you wouldn't know anything about that, because you just assumed things convenient for your argument.
SonyPS4  +   1023d ago
I will never work for EA, ever.
LOL_WUT  +   1023d ago
Like you had a chance
OrangePowerz  +   1023d ago
How do you know? Its not that difficult to get a job in QA or maybe he is a designer or programmer?
majiebeast  +   1023d ago
David Jaffe actually started as Q&A tester.
MooseyXTC  +   1022d ago
Glad we could wrap that one up, Sony.
Crazay  +   1023d ago
The gaming industry is in the crapper right now. Digital Extremes is also cutting heads left right and center. I sure hope this trend stops.
maniacmayhem  +   1023d ago
"EA is a great company, with talented and hard-working teams, a strong portfolio of products and an extremely bright future."

Uuum, actually EA is not a great company since it has been voted WORSE company and the talented hard working teams with strong portfolios...well you just laid most of them off. I guess you're saying you hope those guys have a bright future, brighter than what EA could give them.

EA is notorious for these practices, over staffing then at the end of their projects or quarters laying all of them off. I have no doubt that after B4 and DAIII release we will see another round of layoffs.
aiBreeze  +   1023d ago
I wonder how many of those staff really deserved to lose their jobs. It's the upper management that needs a drastic overhaul, the decision makers, not the hard working talented folk whose creativity is most likely stifled by drooling suits breathing down their necks 24/7.

At the very least, I hope the person/s responsible for always online Sim City and turning it into what is essentially more of a Sim Town simulator were axed, I'm still scratching my head as to what they were thinking turning one of the greatest single player games of all time into watered down social garbage.
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PSjesus  +   1023d ago
it's 83 all over again......why wasting huge amount of money
making games for consoles or PC when we get more making ios or Facebook games?
FreshRevenge  +   1023d ago
not every one follows facebook. I loath facebook. I want to keep my personal life off the net. I have my gaming persona and that is all that I will have on the net. I use my username for all my gaming channels. I tried putting Fresh as my first name and Revenge as my last but it didn't fit their guidelines?? What Facebooks games. Is that a joke?
FreshRevenge  +   1023d ago
This is a prime example of EA not giving two rats ass for the people that work for them. I hope EA chokes and dies as a Corporate Evil monster that they are. They are not doing good as a company if they have to lay people off and than rehire some of them back. Actually I would prefer that Ubisoft or Sony buy them out. From my prospective, Sony has a good working relationship with their developers.

Feel bad about the ones that got laid off. All I can say is, you guys will find a company that will appreciate your hard work!
#9 (Edited 1023d ago ) | Agree(1) | Disagree(6) | Report | Reply
NonApplicable   1022d ago | Personal attack | show | Replies(1)
hkgamer  +   1022d ago
Atleast they sent out a proper memo... doesn't sound as bad as everyone makes it out to be.

It's a shame they had to let off a few people, but I'm sure they could find another job easily.
Gondee  +   1023d ago
Its simple, they care more about the money than the games. They suppress the passion in developers
KillrateOmega   1023d ago | Bad language | show
PooEgg  +   1023d ago
I guess they needed to figure out how to pay the temporary CEO's 1.03 million dollar salary, as well as John Riccitiello's $1.7 million in severance.

While I would like to believe they simply got rid of dead weight, since this is EA we are talking about they probably fired good people, and will replace them by giving the rest of their staff massive unpaid overtime, or by hiring part timers to keep from paying for their healthcare.
Tultras  +   1023d ago
Yes and make them work in chains, giving them shit to eat and fulfilling their worlds desires in them.
g2gshow  +   1022d ago
it should read as this were f***ing up so your getting fired
#13 (Edited 1022d ago ) | Agree(2) | Disagree(2) | Report | Reply
NonApplicable  +   1022d ago
I think it's disrespectful of Kotaku to reveal information about layoffs without consent. This article's purpose is to generate hits by adding fuel to the EA fire. The reality is, when companies issue layoff memos, they all more or less read the same. This is nothing new people!
FantasyStar  +   1022d ago
The guys at Kotaku needs to feed their cats too you know! Give the journalists a break for having nearly nothing to report on a daily basis.
Hicken  +   1022d ago
Why such adamant defense for EA? If they've earned that defense from you, then you should probably know why they've earned these "attacks" from others.

What respect should Kotaku afford EA- especially given that EA isn't very liked in the industry right now- when they give no one else that respect? EA adds fuel to their own fire; a Kotaku article isn't gonna change things much.

Come on, man. Folks already don't like companies, EA among the most hated, apparently. You'd think they could be somewhat more... respectful- you know, what you want Kotaku to be to somebody- towards the people they're letting go. There isn't even PRETEND remorse.

"Thanks for your hard work. Now get out."

Can't say I've read layoff memos from other companies, but whether or not they "all more or less read the same" is irrelevant.

It's a crappy goodbye letter.
MoreRPG  +   1022d ago
Another company hit by layoff. I guess this is what happens when companies go through big changes
titans9999  +   1022d ago
And......EA's boat begins to sink!
GABRIEL1030  +   1022d ago
I read that some EA high directives won million of dollars in salaries the last year. All the bad politics like series overexploiting (Fifa, Mass Effect) , DLC's, season pass and layoffs are the result of the effort of this company to mantain this dirty directives. EA is a big monster with parasites in its head.
#17 (Edited 1022d ago ) | Agree(1) | Disagree(2) | Report | Reply
hesido  +   1022d ago
People lose their jobs, but EA gains market value as markets expect a profitability increase. Nobody in stock market cares about lives ruined or houses that are foreclosed because of these job losses.
titletownrelo  +   1022d ago
What irritates me most about EA, is that they don't even TRY to hide their corruption and greed! Usually companies try to uphold a positive relationship with their community, even if they only care for profit. With EA, they openly say "F*ck you, deal with it", and when they get voted the worst company in America AGAIN, they act confused and wonder what they possibly couldve done wrong.
from the beach  +   1022d ago
Shock news really and it doesn't bode well for next gen.
from the beach  +   1022d ago
You're right, disagreer, this news was expected and bodes well for next gen!
aLucidMind  +   1022d ago
I don't see how EA going down would be bad for next gen or the gaming industry. Wouldn't a corporate powerhouse falling be better for the industry and next gen due to smaller companies being better able to thrive?
worldwidegaming  +   1022d ago
Welcome to the way business works in today's world.
the standard practice is to hire great talent and once
their job is done cut them off. If they keep them on
the only thing will happen is the company will bleed money.
This is going to be the norm from now on.
You really can not trust companies these days.
"Wham bam no thank you mam."

Also, its a damn shame. I really wish they would do their homework on these companies before working for them. Id never work for a company that outright cuts its employees like that.
HmongAmerican  +   1022d ago
Those that got layoff should come together form a small team and start their own game studio. Making indies game. This way they can give EA the finger for letting them go.
#22 (Edited 1022d ago ) | Agree(1) | Disagree(2) | Report | Reply
krazeecain  +   1022d ago
I feel sorry for those that were laid off, but honestly I take this as good news. EA is a terrible company, and maybe this a sign that they're finally feeling the pressure their poorly treated customers are putting on them. They also put a lot of pressure on their developers... Maybe I should be happy for those laid off instead. Lol
threefootwang  +   1022d ago
Not trying to defend EA here, but alot of people are saying flat out "EA's a horrible company," Care to give out any factual reasons as to why they remain the worst? Once again, NOT trying to defend EA, I'm simply wondering WHAT about them that makes them so bad.

The only thing I really can't stand about them is the fact that they love using Micro-transactions and despite my personal hate towards that concept, it appears more and more people don't mind that..
GoldenRimz  +   1022d ago
More money hungry than other companies. They put out Need For Speed: World and it's riddled with microtransactions. They received the Golden Poo from the Consumerist for their Craptastic treatment of the fans, continue to ignore requests for an Underground 2 and have basically turned the NFS series into Burnout.

My complaints primarily involve Need For Speed because that's the only game of theirs I care to play. I also don't like the fact they shut down online servers for older games to force people into buying newer ones, and I feel they're steadily ushering in a new era of paying for play for games made by certain companies separately to get more money through requiring you to have an account with EA exclusively for some online multiplayer.
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e-p-ayeaH  +   1022d ago
"EA is a great company, with talented and hard-working teams, a strong portfolio of products and an extremely bright future."

actions speak for themselves just sayin.
#25 (Edited 1022d ago ) | Agree(0) | Disagree(0) | Report | Reply
ps3_pwns  +   1022d ago
i dont feel bad for them shouldnt have worked for the drm yearly sports game release sim city pile of microtransaction compnay in the first place. they should of known EA will treat its employees the same way they treat gamers lol. this why you dont support crap companys like them ever. i bet some of you probably by 10 EA games a year and thats the problem.

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