EA announced restructuring plans after reporting a fiscal third quarter loss of $641 million, versus a net loss of $33 million a year earlier. The results were dragged down by a goodwill impairment charge of $386 million related to EA's wireless business and a $244 million deferred tax assets charge.
EA CEO John Riccitiello explained the holiday season came in below their expectations and that they've significantly cut their financial outlook for fiscal 2009. The game publisher said the lowered outlook is the result of weaker than expected sales, a strengthening dollar and the delay of several highly anticipated game titles.
The company stated it will shed 11 percent of its workforce, about 1,100 people, and close 12 facilities to cut its costs.
One of the games that's been delayed is The Sims 3, this game was originally slated for February 20 but has been pushed to early June. Also delayed are BioWare's Dragon Age: Origins role-playing game, this game has been postponed from the first to the second half of 2009, and The Godfather 2 was delayed from February to sometime later this year.