Electronic Arts, one of the world’s leading gaming companies, has recently announced that it has laid off almost 6 percent of its work force, a move to cut cost in this gloomy economic condition that has affected various business sectors especially in the technology industry.
According to the company’s recent report, it has accumulated over 800 million of total revenue. While this figure seems to be a proof of financial viability, the industry’s operation cost had amounted to a looming $310 million, a trend which prove to be quite alarming especially during this economic slowdown.
As part of the company’s contingency plan, high ranking officials have decided to lay off almost 500 employees which have been assessed to save approximately $50 million in a year. With this move, a lot of criticism has been thrown to the company’s officials who seem to immediately resort to lay-off when there are many ways to effectively cut costs.
In 2004, the industry has also been criticised for forcing employees to work in extraordinary long hours. Mandating its employees to work seven days a week for more than a hundred hours, in no time the company has been bombarded with many class suits filed by programmers and game artists who were later awarded with $14.9 million and $15.6 million respectively.
Meanwhile, in this gloomy economic condition, there are many technology giants which have resorted to lay-offs that are even growing in a much alarming rate.
And in this financial and economic slowdown, tightening one’s belt may prove to be one of the best solutions.
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