With John Riccitello no longer helming EA, Larry Probst has stepped in to steer the company during the interim until a new CEO is announced. Probst has been tasked with the difficult job of assessing EA from top to bottom, resulting in the decision to initiate a series of layoffs.
While its not clear what the actual headcount reduction looks like, according to rumors EA is looking to reduce its workforce by as much as 10 percent. EA is the largest video game publisher in the world with over 9000 employees worldwide.
In an internal letter sent out to EA employees, Probst explains the reason for some of the changes that will be coming. He writes:
As Executive Chairman, my focus is to ensure EA is delivering high quality games and services to our consumers, while helping the executive team develop a FY14 operating plan that drives growth, rationalizes headcount and controls costs.
Probst also talks about a communication that went out during the last two weeks detailing plans to reduce the workforce. He also announced organizational changes with marketing coming under Peter Moore now.
Core marketing functions have been consolidated under our COO, Peter Moore. The combined group will bring together our Label marketing teams, Global Acquisition Marketing and Marketing Analytics into one multi-talented team under Todd Sitrin’s leadership. The development and marketing teams will continue to work as cohesive units, driving clear and consistent messaging and consumer engagement for each of our franchises.
All operation around EA’s digital distribution platform Origin will now come under Frank Gibeau’s EA Labels division.
Origin will move into Frank Gibeau’s Labels organization. Andrew Wilson will take on the leadership of Origin, working with CJ Prober and the team to create more value and an enhanced entertainment experience for our consumers.
Gamasutra’s source claims that the 10 percent reduction rumor is erroneous and that the layoffs are well below 2,000 employees. EA Partner games still seem to be intact with Insomniac Game’s Fuse on track for release.