Electronic Arts Layoffs Explained

Electronic Arts (NASDAQ:
EA
) drew quite the controversy when it was revealed that the company planned to layoff
as many as 1,000 people
. While the game publisher attempted to reduce the bad press with a couple of vague statements, EA never actually denied the layoffs.
However, just as people are hired for three- and six-month jobs in Hollywood, the game industry is very much a per-project business. With that being the case, when is a layoff really a layoff at a game company? To get these answers and more, Benzinga turned to an expert in the field: Mary-Margaret Walker, founder and CEO of
Mary-Margaret Network
, a recruitment company that serves the game, mobile, web, multimedia, IT, TV and film industries. During our discussion, I started by asking Walker how EA's layoffs compare to those of other major corporations in other industries, such as Ford (NYSE:
F
Faster Than Most
MSFT
). "It took her three months, but she's now with another company," said Walker. "And she didn't have to move and she didn't have to jump through any big hoops. She just put out that she was looking. She's more high-tech than she is game industry, but here in Silicon Valley there's not always a huge difference. She used to work in the games industry so she could have done it again."
The Pros and Cons of Layoffs
Walker said that she does not think that layoffs are "as much of a trauma to the overall industry and the overall employment market" as people might think. "It certainly is a trauma to the individual person -- that's
never
Finding Work
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