Video game publisher Electronic Arts Inc said ay it will cut 1,000 jobs, or 10% of its work force, as part of a restructuring plan that will save around $120 million a year.
The company plans to take charges of $55 million to $65 million over the next several quarters.
EA, which is best known for its “Madden NFL” and “FIFA Soccer” games, said the majority of its job cuts will be completed by March 31.
The company said the restructuring will see the consolidation or closure of at least nine studio and publishing locations.
EA said it is working on a plan to narrow its product portfolio of games to focus on hits with higher profit margins.
Earlier this month, EA warned its fiscal 2009 profit and revenue would fall short of already-low forecasts due to disappointing holiday sales of its video games in North America and Europe.
The company told analysts then that key titles had continued to underperform and that it was under pressure as consumer electronics retailers tightened their inventory management. (Reuters)