With its Q2 fiscal report, which records increased losses, the publisher announced that it would be laying off 1500 jobs and closing several facilities. 1300 will be included as part of a restructuring plan. The majority of action will be completed by March 31 2010.
The losses join the 1110 announced in February this year and the 600 announced in October last year.
EA says that the aim is to make annual cost savings of at least US$100 million, and is expecting restructuring charges of between US$130m to US$150m.
During a conference call to investors, chief financial officer Eric Brown said that game development would take the brunt of the reductions, with 900 positions being removed, with 500 losses in publishing and 100 in corporate.
"Laying off employees and closing facilities is never pleasant," said Riccitiello in a prepared statement. "We have a lot of compassion for those impacted – but these cuts are essential for transforming our company."
According to Gamesindustry.biz, Riccitiello suggested during the investors call that around 12 of its unannounced projects have been cancelled, saying that anything that that couldn't measure up to the profit of EA's core sports titles and The Sims "got cut from our title slate from this point going forward".
He added that though the first 'bold' step to achieving this change was cost reduction, the second was to develop investment in direct digital distribution, a move already put into place by EA's confirmation of its purchase of Facebook game maker Playfish yesterday.
"Five years ago, we estimated that digital was less than 10 per cent of the global industry," he said. "Today, we estimate digital is 35 per cent of the total. Our sense is that the various digital businesses will grow at 20 per cent or higher this year and for the next several years."