This action will result in the closure of several facilities and a headcount reduction of approximately 1,500 positions, of which 1,300 are included in a restructuring plan. The majority of these actions will be completed by March 31, 2010. This plan will result in annual cost savings of at least $100 million and restructuring charges of $130 to $150 million.
Which is important, given how they just spent $300 million to buy a Facebook game developer!
The axe is already falling everywhere, with Mythic in particular being gutted. No idea on specific numbers, but unofficial reports have “80 people today, which is about 40% of the company and responsible for 90% of the content”. (Source)
Not a good time to be looking for work. Ahem.



#1 by geldonyetich on November 11th, 2009
I come from a family of educators. Thus, in confronting one not particularly good at learning, I believe persistence may produce results.
But, to try to reroute things back to the topic at hand, corporate America is generally a muddled mess that needs to stop devaluing talent and instead putting it to work on something other than desperate flights of fancy.
#2 by Scott Jennings on November 11th, 2009
Prominent guy who IS Scott Jennings:
http://brokentoys.org/2008/12/22/its-beginning-to-look-a-lot-like-pontification/
#3 by Chris A on November 11th, 2009
Yeesh, lousy timing. For what it’s worth, we’re looking to fill a few positions, so if any of you are keeping an eye out for work as a result, say hello.
#4 by K.C. on November 11th, 2009
Here is how they apparently monetize these games:
http://www.techcrunch.com/2009/10/31/scamville-the-social-gaming-ecosystem-of-hell/
Despicable, if accurate.
#5 by Mist on November 11th, 2009
I don’t see how the recession is to blame for Warhammer being terrible. Barack Obama, nor George W Bush himself, did not cause Mythic to have to invent a new unit of time measurement to compensate for how unresponsive their game was to player input. How long is it going to be before people realize that Warhammer was fundamentally flawed to the core and that’s why it failed, and why Mythic has to be ‘restructured?’
The UI was less responsive than VB apps I wrote on my 486 back when I first learned to program.
#6 by mike on November 11th, 2009
http://www.idsoftware.com/business/jobs/index.php
ID just posted a lot of job listings for those that might be interested!
#7 by Jupp on November 13th, 2009
It is fascinating that given the current economic times are are living in people are still wondering why big companies let go of a good chunk of their staff and concentrate on the areas where there is potentially a shitload of money to be earned and that everything gets reviewed for profitability down to the last job.
What should EA do? Keep all their staff and continue as they did before? As sad as it is, and I say this as a subbed and enthusiastic WAR player, but some of the studios that got the axe now pay for the unmet expectations of their product. Or for the overhyped product that was not what it should have been, call it what you want.
It is a time of consolidation we live in and to think that the computer entertainment sector is not affected by it is downright stupid thinking.
#8 by Viz on November 14th, 2009
Wasn’t shitty, but considering the amount of money spent on it? Nobody’s getting fired at Popcap, I don’t think.
#9 by Brask Mumei on November 15th, 2009
This is the best time to *not* fire all your employees.
If you have the cash or cash flow, you transfer them to longer term projects so when we come out of the recession you are ready to hit the ground running while all the companies who slashed their budgets are facing a crises of aging infrastructure.
Of course, the real politik of the economic world is that if you are a public company, this is an impossible move, since your stock price will crash due to the concerns of short sighted investors and you’ll be raided for your cash and put out of business.
Strangely, the pro-capitalists think a system which forces companies to act in such inhumane and inefficient manner to be working-as-intended.
As was pointed out upthread, only stock holders seem to buy the illusion that a $130 million restructuring fee to save $100 million a year is a good idea. The rest of us know that that supposed yearly saving will not show up on future balance books.
#10 by Muckbeast on November 16th, 2009
I feel terrible for everyone that lost their job at EA. But honestly, that is part of what you sign up for when you join a behemoth like EA.
I’m biased, but how about taking a job for less pay at an indie, where you aren’t going to get laid off when the CEO sees something shinier than your project.
#11 by Guy on November 16th, 2009
@Muckbeast: That’s amusing, because in some industries, being part of a big company give you *more* job security, not less. But on the other hand, big companies can percolate even greater asshats to their top positions.
#12 by geldonyetich on November 16th, 2009
Job security? What do you think this is, 1960?
#13 by Guy on November 16th, 2009
It still exists, it’s just not as common…
#14 by geldonyetich on November 16th, 2009
Unless there exists jobs where your employer is contractually obligated not to fire you, I remain skeptical.
#15 by Brask Mumei on November 16th, 2009
What industries are those, Guy? I noticed in December every single big company took their turn to summarily fire 10% of their staff. Funny how all these organizations had the exact same amount of fat to trim, no? Certainly not a case that panicked stock holders were demanding CEOs prove that they were “cutting back” and 10% being a nice round number to pass onto underlings as the proper amount to fire.
Muckbeast has it right. You either work for a big company that won’t go out of business, but will fire you for no reason one day, or work for a small company that may go out of business for no reason some day, but at least won’t fire you on a whim.
#16 by geldonyetich on November 16th, 2009
Or go sole proprietorship. Suffice to say, you tend to be a bit more forgiving over your employee when you’re your own boss.
#17 by Lee Quillen on November 16th, 2009
“Unless there exists jobs where your employer is contractually obligated not to fire you, I remain skeptical.”
Or a job where demand for employees is vastly larger than supply due to government regulations mandating qualifications
#18 by geldonyetich on November 16th, 2009
If they clarified where such demand existed in this country, methinks the supply would not be lacking for long.
#19 by Guy on November 17th, 2009
You define job security as your employer not being *able* to fire you? I don’t think that’s what job security used to mean when it was common. It just meant you could reliably make a lifetime career at one company. Although, come to think of it, unions would make it hard to lay people off, and unions used to be stronger, so there is that.
Interesting fact, though: in Germany, there *are* laws that make it less desirable to lay off workers, and encourages them to keep them on as part-time workers if they really need to save money. Companies in France are also far less likely to lay off workers. This has benefits to international divisions of certain European companies located in the US.
Industries where you are less likely to be fired due to the size of the organizations are typically industries that depend on large government contracts, such as aerospace, defense, and infrastructure. Infrastructure should do well now, since stimulus funding is easiest to justify for large government-funded infrastructure contracts, which are always useful (especially considering the US’s infrastructure, of any kind, be it roads, bridges, or electrical grids, are long overdue for overhauls). These fields are all far less volatile than, say, the gaming industry.
#20 by geldonyetich on November 17th, 2009
I didn’t mean to imply that you should be able to get away with murder, but rather that today’s corporate management policies are such that job security is an illusion.
So long as they are able to fire you without repercussions, what guarantee is there really that you would make a lifetime career at one company? You can find examples of people whose careers turned out that way, sure, but what proof do you have that you’re not simply nitpicking the lucky out of the unlucky?
Maybe I’m biased because, everywhere I turn, I’m being taught that the modern worker does not bank on keeping any job for long. I think a person who has been more fortunate in their job opportunities would hold a contrasting view.
#21 by Guy on November 17th, 2009
Certainly people change jobs a lot more these days. Since there is less job security now, there’s less incentive to stick with a company if it’s not that great for you. I’m not arguing things aren’t worse, all I’m saying is there is still job security to be found in certain areas/companies/countries/whatever. It’s not nonexistent, but it’s not all like short-term software cycle development, which is what the gaming software industry is. Get into something more bureaucratic, and things move a lot slower.
And certainly luck plays a large part.
#22 by geldonyetich on November 17th, 2009
Is it heads, tails, or a coin?
#23 by Tremayne on November 17th, 2009
Guy – not sure about the situation in Germany, but certainly in France all the laws restricting firing of staff have had an effect: companies are reluctant to hire people in the first place on anything other than short term contracts (which are exempt from said laws). Net result is that while older French workers have great job security, an awful lot of young people cannot get any kind of decent job at all, and this was a major cause of rioting a couple of years back.
Anglo-saxon model = moderate insecurity and suckage for everybody.
(continental) European model = good news for some and a royal screwing over for others.
Matter of personal preference which system you think is worse.
#24 by geldonyetich on November 17th, 2009
So, amongst those to get the axe from EA?
Pandemic Studios, apparently.
Makers of Battlezone 2, Star Wars: Battlefront, and the Mercenaries series.
#25 by Guy on November 17th, 2009
@Tremayne: I do prefer a more flexible system, as long as there is credible opportunity for retraining should an entire industry’s labour pool suddenly become outdated.
Germany has managed to avoid the increasing unemployment that has hit the US, despite also being hit by the economic crisis, in part thanks to its pro-employment laws.
I’m well aware of the downsides in the French model, not just to those who get screwed by it, but also to the quality of the service provided by people who can’t be punished, or by the inflexibility of people who don’t want to cross lines at their employer that, being a life job, will screw them forever. (See, it’s even bad for those with lifetime jobs, and their customers… although less so than for those without good jobs.)
#26 by Guy on November 17th, 2009
@geldo: Trust me, just aim for the bureaucratic industries. Which of course includes government (except those political appointment positions, those change with every election shift of course). Preferably federal government, it seems state government in the US seem to have the bad habit of screwing themselves by ratcheting up obligations while ratcheting down taxes…
#27 by geldonyetich on November 17th, 2009
I actually did try to find some civil service work not too long ago.
You know how they used to have a civil service exam you take to determine placement?
They replaced it with a monster.com-like job board.
It’s a pretty handy method to ignore the majority of their applicants.