Electronic Arts posts $391 million loss
Company planning to lay off 1,500 employeesElectronic Arts said Monday that it lost $391 million in its fiscal second quarter and will lay off 1,500 people.
The company also said it paid $275 million to acquire Playfish, a maker of free computer games that have a social networking component to them.
EA's loss widened from last year's $310 million in red ink. But on an adjusted basis, EA earned $19 million compared with a loss of $20 million last year. Revenue was down 12% to $788 million.
EA already has cut 1,100 jobs this year; the additional 1,500 layoffs amount to a 17% reduction it its work force.
The acquisition of 2-year-old Playfish gives EA a leg up on games played on Facebook, MySpace and similar sites, a fast-growing niche expected to yield big profits someday.