EA cutting 1500 jobs

[Meshugger]

I'm not sure exactly how the GAAP and non-GAAP adjustments work, but would purchasing assets be considered a loss?

 

No, purchasing assets do not show up in the red as it is considered as an investment. For example, a factory can have machinery worth tens of millions. However, the internal turnover of the factory could be in red.

 

Volourn: you would be surprised by the amount of stupidity that happens at companies when hiring/firing people. Nepotism, personal grudges, unnecessary restructuring, and so on.

[Mamoulian War]

"... 2 dollars a hour and 80 hours a week should be enough rewards, no other benefits needed..."

 

Yeah, because that's exactly what EA does. Even at its worst, it didn't do that. Nice try, though.

 

 

"Then it is pretty understable."

 

Companies don't use let people go just for the fun of it. It doesn't make sence to hire someone, train them, and then can them for ****s and giggles.

 

 

it's called sarcasm... but yes, it's all my fault, just to be sure, the next time i will post something like that, i will make <sarcasm> and </sarcasm> tag so even the less perceptive readers will take a notice of it...

[Wrath of Dagon]

Companies lay off while purchasing other companies all the time. One is operational expenses, the other a capital investment. Similarly, money they spend to buy other companies isn't considered an expense, thus doesn't contribute to a loss, the interest on the loan would be an expense though. Don't know what all that GAAP nonsense means.

[alanschu]

I'm not sure exactly how the GAAP and non-GAAP adjustments work, but would purchasing assets be considered a loss?

 

If they purchase it on loan, they have to pay the money back and it is substracted from your income... i do not know how it is correctly calculated aswell so i rather shut up but seeing in same day, that company spends 300 millions and cuts off 1500 employees is very rare sight even in "high" bussiness... to be honest up to this day i have never seen such an announcement from any other companies...

 

 

I know that purchasing it on loan won't be reflected. Basic accounting would have the loan go under liabilities, and the cash itself go under assets. The net value would be zero (though the interest payments will over time, reduce your cash assets).

[Nightshape]

EA will just be ditching the studio's which ain't performing. This is likely related to the fact that the team's are probably not good teams, while there is likely talent inside, it don't mean that the teams are making good products.

 

Bad studio's deserve to die.

[Mamoulian War]

... the interest on the loan would be an expense though...

 

that's exactly what i had in my mind... thanks...

[Mamoulian War]

EA will just be ditching the studio's which ain't performing. This is likely related to the fact that the team's are probably not good teams, while there is likely talent inside, it don't mean that the teams are making good products.

 

Bad studio's deserve to die.

 

studios can be bad aswell, when the man in the charge has no clue what he is doing... the men at charge in these studios were EA executives...

[skuld1]

studios can be bad aswell, when the man in the charge has no clue what he is doing... the men at charge in these studios were EA executives...

 

And you are able to present evidence that this in fact the case w/ EA at the moment?

[Oner]

[Nepenthe]

studios can be bad aswell, when the man in the charge has no clue what he is doing... the men at charge in these studios were EA executives...

 

And you are able to present evidence that this in fact the case w/ EA at the moment?

 

He's arguing on the internet, not in a courtroom. Evidence is for courtrooms. And occasionally arbitration.

[aries101]

According to a post at Kotaku I saw earlier today, it really is a big lay-off to many companies inlcuding Pandemic (developing Saboteur), nearly all of the Command & Conquer staff gone...and more...much more....

 

As for Bioware, let's just be thankfull that Dragon Age: Origins is selling really really well....People better buy Mass Effect 2, too...

 

Have any of you any idea on how this might affect Bioware, the development of SW: Kotor, or other projects by Bioware...

 

edit:

 

As for firing people (1500 or more) when you buy a company like Playfish, this is nothing more than a business decision. EA decided it wanted to into the social gaming (and browser gaming) scene. They've bought the Playfish company to do just this. In able to do this, they've decided to close some of their activies, focusing on a few relevant game development houses. It does seem a bit odd, but as others have pointed out, it is how a company (large or small) behaves in a capitalistic societey - where profit (earnings) is everything. The management have to think about the company's best interest in the long run - it wouldn't be very helpfull, would it, if EA decides to not fire the 1500 people and then in 1-2 years went under i.e. ceased to exist...

 

As far as the unions go, it also seems a bit; it also seems a bit odd to me that people are just told to go away the same day or the day efter they've been fired.

Especially since liiving in Denmark where we have 'notices of redundancy' - [Companies must by agreement give workers 1 month or 6 monts notice before a lay off - salaries are still being paid to the workers in this time - again by agreement...]

 

In Denmark, a company that takes over another company must ask if any of its former workers want to go and work for the new company; people that are being fired these days experiences that the companies behing the firing are indeed helping them to get a new career...

Edited November 10, 2009 by aries101

[Gorgon]

There aren't going to be anymore Kotor games, just some depraved Mmporpheger.

[Oner]

There aren't going to be anymore Kotor games, just some depraved Mmporpheger.

If they make a cool mecha MMO in a BLAME!-like setting, I won't mind.

[alanschu]

I think aries meant SW:TOR when he said SW:KOTOR

[aries101]

I think aries meant SW:TOR when he said SW:KOTOR

 

Yes, of course, I did. I'm just tired right now. Our building is getting a new roof. And it's very fun (not!) to be woken up at 6.30 AM....or 7.00 AM..

I tend to go late to bed....at around 1 AM....

 

Anyway, the point is this:

 

I hope that SW:TOR doesn't get cut...and is still on schedule for release...

 

I also hope that Bioware in Canada will be OK...

[alanschu]

Well, its certainly never "yay" news when you hear of layoffs from other parts of the company, but so far things seem business as usual here.

[Nightshape]

EA will just be ditching the studio's which ain't performing. This is likely related to the fact that the team's are probably not good teams, while there is likely talent inside, it don't mean that the teams are making good products.

 

Bad studio's deserve to die.

 

studios can be bad aswell, when the man in the charge has no clue what he is doing... the men at charge in these studios were EA executives...

 

EA has a very high expectation of its studio's, its not just, are you making a profit, it's more are you making a large enough profit.

 

Regardless, if you have a retard running your studio, why, oh why are you sticking around... Trust me when I say there are enough high's, low's, and politics at good studio's, what you describe is a hell hole ran by a retard and I would get out. Realistically the studio's that seem to be shutting are most certainly the weaker EA studio's within the group, the culture within those studio's also likely justify's this also.

 

Also, I don't think you've actually read my post, I reiterate, bad studio's deserve to die.

[Nightshape]

Have any of you any idea on how this might affect Bioware, the development of SW: Kotor, or other projects by Bioware...

 

Yeah I do, and Bioware is so far up the chain of EA that you'd be on crack to think this would effect them.

[Wrath of Dagon]

They're also cancelling all the risky projects, and are going to just try exploiting their big franchises year after year. No more Mr Nice Guy, back to trying to out-evil Activision.

 

http://www.gamebanshee.com/news/95724-elec...n-projects.html

[Mamoulian War]

studios can be bad aswell, when the man in the charge has no clue what he is doing... the men at charge in these studios were EA executives...

 

And you are able to present evidence that this in fact the case w/ EA at the moment?

And you are able to present evidence that this in fact NOT the case w/ EA at the moment?

[Hell Kitty]

studios can be bad aswell, when the man in the charge has no clue what he is doing... the men at charge in these studios were EA executives...

 

And you are able to present evidence that this in fact the case w/ EA at the moment?

And you are able to present evidence that this in fact NOT the case w/ EA at the moment?

 

When someone asks for evidence supporting a claim you make, this is about the lamest response you can give. You made the claim, the onus is on you to back is up.

[Aristes]

You know, I almost gave this exact response yesterday.

 

I curious to hear what you think of the question of EA cutting 1500 jobs, though. For my part, I feel sorry for the poor bastards losing their jobs, but I don't think it's evil of EA to restructure their line-up. They're a company and their first obligation is to the investor. More to the point, they wouldn't focus on making more sequels if sequels didn't sell. It's what folks want and no company is going to stay in business making what people won't buy.

 

I'm looking for reasons to be outraged, but it seems like a business decision to me. Now, if the business goes belly up because of these decisions, then folks can start pointing fingers in earnest.

[Mamoulian War]

studios can be bad aswell, when the man in the charge has no clue what he is doing... the men at charge in these studios were EA executives...

 

And you are able to present evidence that this in fact the case w/ EA at the moment?

And you are able to present evidence that this in fact NOT the case w/ EA at the moment?

 

When someone asks for evidence supporting a claim you make, this is about the lamest response you can give. You made the claim, the onus is on you to back is up.

 

maybe when i would be in some sort of court maybe... and i have not stated anywhere that it is a fact... read my post again... studios "CAN BE" bad aswell... CAN BE != ARE

[Hell Kitty]

studios can be bad aswell, when the man in the charge has no clue what he is doing... the men at charge in these studios were EA executives...

 

And you are able to present evidence that this in fact the case w/ EA at the moment?

And you are able to present evidence that this in fact NOT the case w/ EA at the moment?

 

When someone asks for evidence supporting a claim you make, this is about the lamest response you can give. You made the claim, the onus is on you to back is up.

 

maybe when i would be in some sort of court maybe... and i have not stated anywhere that it is a fact... read my post again... studios "CAN BE" bad aswell... CAN BE != ARE

 

I was speaking generally, not referring to this specific discussion. Like I said, such a response is terrible when asked for a reason for your claims. Of course, stating it's just an opinion and not a fact doesn't really add much. "Why do you hold that opinion?" "Why shouldn't I?" Whatever.

 

As for EA, I liked that they were willing to bring us new IP like Dead Space and Mirror's Edge, and I don't know what this news means for the sequel to the latter. I never bought into the whole evil nonsense and I'm not about to start now. It's just business.

[Mamoulian War]

I was speaking generally, not referring to this specific discussion. Like I said, such a response is terrible when asked for a reason for your claims. Of course, stating it's just an opinion and not a fact doesn't really add much. "Why do you hold that opinion?" "Why shouldn't I?" Whatever.

 

As for EA, I liked that they were willing to bring us new IP like Dead Space and Mirror's Edge, and I don't know what this news means for the sequel to the latter. I never bought into the whole evil nonsense and I'm not about to start now. It's just business.

 

I have not even stated that it was an oppinion, the only fact in that sentence is that companies/studios/whatever CAN be bad, when their executives sucks donkey balls, if this is the case of EA or not i do not know and i do not care... It does not change my attitude to them, and i hope they get so much money from the facebook games deal, that they do leave the PC/console business forever...