Job Cuts Megapost: EA, Microsoft, Sony

Posted by Dan on January 23, 2009

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• In cost-cutting news today, EA announces the laying off of around 200 jobs, most of which are coming from Black Box (a studio of around 350 total.
• Microsoft cuts 5000 jobs in R&D, marketing, sales, finance, legal, HR, and IT. The cuts will be structured with 1,400 losses today and another 3,600 over the next 18 months. This follows today’s announcement of a 11 percent drop in fiscal second-quarter net income. Microsoft expects to chop its annual operating expenses by about $1.5 billion and slash fiscal year 2009 capital expenditures by $700 million. Hint to graduating 3L’s: Don’t look in-house at Microsoft. No future. No jobs. Die alone.
• Sony will accelerate cost cutting measures. Sony’s plan: Structurally reform the company’s core electronics operations to better compete with its best in class peers in terms of speed to market and profitability. Continue margin improvement activities to lessen the impact of the weak economic profile of key markets. Accelerate the integration between products and network services by leveraging the combined strengths of Sony’s electronics and computer entertainment operations. One would hope that the final step means that SCEA and SCEE should remain somewhat unscathed. Right?
• Nope! “Sony intends to accelerate these actions, and in addition, implement further initiatives which are being announced today. Through these measures, together with anticipated restructuring to be achieved within the game, music and pictures businesses, and significant cost reductions in advertising expenditures, general expenses, logistics and other expenses, Sony now anticipates that it will achieve group-wide cost reductions of 250 billion yen (compared to the current fiscal year ending March 31, 2009) in the fiscal year ending March 31, 2010.”
• How harsh is this restructuring going to be? “In the Game segment, operating income (loss) is expected to be lower by approximately ¥30 billion. Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen and approximately ¥15 billion is due to lower-than-expected sales.” Kotaku has a good graphic on Sony’s financial woes.
• This is from an allegedly “recession proof” industry. Right. Tell that to the Skate 2 team.

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