Despite the slew of titles that Electronic Arts has recently released and a rise in fiscal second quarter revenue, losses continue to mount. EA cited weak retail sales as the reason for the losses, and in response EA announced that it will start a cost reduction plan than includes laying off about 600 employees, which is six percent of the company’s staff.

The layoffs are expected to gain EA a pre-tax savings of at least $50 million. The employees involved in the layoffs are based globally and the layoffs will not be focused on any single studio. According to our sources, employees that will be affected will start being informed this week - what a nice pre-holiday surprise.

Severance packages are likely to be provided, according to our sources, and will be based on length of service. While layoffs are expected globally, our sources tell us that some employees at Electronic Arts Los Angeles and Pandemic were informed today.

EA is still very upbeat on its sales potential for the holiday season. While the performances of some of the recent title releases have done very well, others have had very mediocre sales. Still, EA believes that beyond the holiday season the potential growth is favorable, given the pending release of future titles that are currently in development and have yet to be released.