We posted up the unfortunate news of EA South Africa closing down yesterday and while we are still yet to get official confirmation of that it is looking like it wasn’t only South Africa that was affected.
During EA’s most recent earnings call the current CFO, Blake Jorgensen, stated
Our cost reduction plans will reduce our overall headcount by approximately 10 percent,
He didn’t state which areas would be most heavily affected but if our own local sad story is anything to go by then we can expect more regional offices to close and be merged into larger offices that will now look after groups of areas.
Personally it irritates me to no end when a profitable company slashes costs and retrenches people all in the name of the almighty dollar. There is more to life than having money in the bank and an extra couple of million for EA isn’t worth the pain and hardship that putting nearly 1000 people out of work will cause.
EA are not alone in this careless approach and I personally blame the power that companies gave to the accounts department who appear to care about nothing but ensuring every months profit is higher than the last. No matter the cost or long term pain this will cause.
Bah humbug… let’s rename today to klap an accountant day.
Last Updated: May 9, 2013
That Tall Twit
May 9, 2013 at 12:34
Header win!
That Tall Twit
May 9, 2013 at 12:34
Header win!
Admiral Chief Combat Engineer
May 9, 2013 at 12:37
Good thing you said klap and not clap
FoxOneZA - X-Therminator
May 9, 2013 at 12:38
Ethics/Philosophy. It’s never included in those BCOM degrees.
umar bastra
May 9, 2013 at 12:48
Agreed with article … It’s horrible to think how expendable employees really are….I feel for those people that we retrenched.
Sir Rants-a-Lot Llew
May 9, 2013 at 12:52
Very sad news indeed. And this after EA said they are still making a good profit. Why let people go if you are still making great profits? If they were in trouble it would be a different story.
Just goes to show that it all revolves around greed. This mentality is seeping in to all their games as well.
OVG OfflineVideoGamer
May 9, 2013 at 12:57
Evil Accountants.
Something big is going to be announced by EA on the 21st of May.
Sir Rants-a-Lot Llew
May 9, 2013 at 13:04
They climbing in bed with MS?
Kaya
May 9, 2013 at 13:09
This is sadly how EA is able to post profits, by closing offices and retrenching people.
Sir Rants-a-Lot Llew
May 9, 2013 at 13:27
Actually during closures like this profitsshould show a marked drop. But EA have posted gains.
It drops because closures like this are hellishly expensive with all the retrenchment packages etc etc.
So they are closing, paying money on these closures and STILL making profits. Now that is sick 🙁
Weanerdog
May 9, 2013 at 13:32
Sadly the aim of the company is to make money for the shareholders, not to make friends. That is the bottom line and the reason why they are the worst company in America yet very profitable.
Kaya
May 9, 2013 at 13:09
This is sadly how EA is able to post profits, by closing offices and retrenching people.
matthurstrsa
May 9, 2013 at 13:11
“There is more to life than having money in the bank”
AMEN!
matthurstrsa
May 9, 2013 at 13:11
“There is more to life than having money in the bank”
AMEN!
Trevor Davies
May 9, 2013 at 13:54
This is something most corporates do. It’s not the accounting dept, they just produce the financial statements. it’s the board of directors in their ivory tower looking down on all the little worker ants that take those & make decisions. Their only interest is making arbitrary sales & profit targets so that shareholders will be happy.
My internal auditing lecturer had a great analogy, “Using only financial statement to run your business is like getting in your car, covering the windscreen with financial statements, then driving forward into traffic while looking in the rear view mirror.”
Rince da Ref Lvl2
May 9, 2013 at 13:58
I like that quote. In fact, I have now stolen it, sent it to a factory where it will be printed onto cups, magnets for your fridge, and t-shirts. The financial statements I shall receive from all the money I am going to make will not only cover the windscreen of a car, but of a bus too! Like a BOSS!
Trevor Davies
May 9, 2013 at 14:17
It’s bold initiative taking like that which makes you the visionary leader you are 😀
Rince da Ref Lvl2
May 9, 2013 at 14:24
I are best vison leeder!
Trevor Davies
May 9, 2013 at 14:49
Just remember to pay your taxes lol
Rince da Ref Lvl2
May 9, 2013 at 15:27
eish!