EA will spend over $125 million laying off 5 percent of its workforce
EA will spend over $125 million laying off 5 percent of its workforce
The publisher is implementing a sweeping restructuring plan that will also result in project cancellations and office closures.
The efficiency of capitalism. Spend god-knows-how-many millions of dollars and time, then realize you'd rather spend 125 million all over again just to go back and spend even more millions to hire back the dame numbers again in 1-3 years.
They make 5 billion a year, thats less than 2.5% of the money they make every year, it's a rounding error to make the spreadsheets look real good to the money lenders .
My company just let me go with a 6 figure package (x amount of pay + stocks). They could have easily kept me there for another year, but that's not as good for the spreadsheets.
Can confirm. A recent layoff at a big company paid me out a solid 6 figures to leave.
"These charges consist of approximately $50 million to $65 million associated with office space reductions, approximately $40 million to $55 million related to employee severance and employee-related costs, and $35 million to $45 million in costs associated with licensor commitments," reads the filing.
The severance I get, but why is closing offices costing them so much. And what are “ licensor commitments?”
cause commercial rental is a commitment, if you can't find another company to take over your lease, chances are you have to pay the majority of left over amount + penalty + restoration. Licensor commitments are similar but probably on tech/software licensing, ie. server rentals, Maya/Speedtree licensing agreement for the site, whatever cloud service they use for backup and share stuff, etc. Those at bigger scale aren't paid year to year like your regular indie studio just subscribe to Adobe/Autodesk for app uses per seat.
Probably all the hardware and shit they have at those offices, too. Likely all leased.
Maybe getting out of fixed leases?
Yeah, that would make sense. Commercial leases can be up to a decade long.
Every big UK company I have worked for doesn't own its building. They will typically agree to rent a building for 5-20 years at a fixed rate (longer times if its being purpose built for them) .
So I would expect this is paying out the rest of the rental agreements for a building to escape the building lease.
It is to do with financial reporting and the way asset and operational costs are reported.
Welp, I already didn't like the games EA currently makes. Looking forward to going well out of my way to avoid buying anything they put out, no matter how good the reviews, trailers, etc. seem.
Perfect example of "it's not about the money, it's about control"
Please don't be Bioware, please don't be Bioware...
It's already dead. Just let it go
