UPDATE 2-Electronic Arts posts loss, to cut jobs

Mon Nov 9, 2009 10:45pm GMT
 
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* Q2 EPS ex-items 6 cents vs Street view 7 cents

* Q2 non-GAAP rev $1.15 bln vs Street view $1.14 bln

* To cut 1,500 jobs; to narrow product portfolio

* Shares edge lower in after hours (Adds CFO interview, analyst comment, earnings details)

By Gabriel Madway

SAN FRANCISCO, Nov 9 (Reuters) - Video game publisher Electronic Arts Inc (ERTS.O) posted a wider quarterly loss and said it would cut about 1,500 jobs, or about 17 percent of its workforce, in another round of restructuring to cut costs.

The publisher of "Madden" football and "Need for Speed," whose shares fell 2 percent, also plans to narrow its product portfolio to focus on titles with higher margin opportunities.

EA will pare jobs and close several facilities to save $100 million a year. Chief Financial Officer Eric Brown told Reuters the cuts were targeted at research and development and corporate functions.

"We're cutting the projects and the support activities that don't make economic sense and freeing up more resources ... to push our key titles even harder," Brown said in an interview.  Continued...

 

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