Earlier we reported that EA was going to lay-off 500-1000 employees in a few weeks but EA has denied this and has released a statement to people who asked them for clarification.

This is what they said:

“EA is growing and looking to hire hundreds of people for our digital, console, mobile and social games,” they said.

“Like all game companies, we make occasional adjustments to resize teams as projects are completed and new priorities are established.

“Overall, we expect that headcount will be up at the end of this year.”

Sony has mentioned that they will be laying off 10,000 people this fiscal year, so this is nothing compared to what’s happening with other major companies.

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EA will lay off 500 – 1000 employees early next week, according to Derek Andersenof Startupgrind. He wrote that it represents almost 5-11% of their workforce and mentioned that it’s due to a lot of reasons.

“While it looked like a possible banner year, over stretching on several fronts led to a disappointing fiscal year. Estimates put Battlefield 3 sales around 13MM units, the company ‘chased’ the launch dumping an estimated $30MM into incremental marketing after the game launched according to one source within EA,” he wrote.

“The same thing was done for Star Wars to extend its run and try to improve sales. Star Wars sell through is estimated to now be around 3MM units, but the subscriptions which are needed for an MMO to payoff are already declining.”

I don’t think he has written anything that we already don’t know except “I have a bunch of sources”, but it is worth reporting nonetheless.

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