There is Nothing to See Here

Below is the "everything is fine" letter sent to EA employees following yesterdays layoffs. Doesn't feel so good when it happens to you, does it, Jack? IGN has an interview with David Swofford that's worth reading -- at least he's still at Origin.

Date: Wed, 21 Mar 2001 17:02:35 -0800
From: "Riccitiello, John"
To: "EAWORLD @ EAHQ"
Subject: EA ACTION

Today, EA.com announced staff reductions to our online business that will put us on a quicker path to profitability by reducing costs and focusing our efforts. I want to make sure that everyone understands the scope and context of these actions.

We've made changes in three of our online business locations to align and consolidate geographic resources, provide more resources to successful products and to transition our new team at pogo.com into our business.

The reasons behind these decisions are:

First, the acquisition of pogo.com put us two years ahead of schedule on our goal of having the leadership position in family-oriented online gaming. Pogo built a site that was judged by Media Metrix and others as one of the most heavily trafficked sites on the entire Internet. Integrating that content and expertise onto our site resulted in some duplication in our Pop Channel, tech support, quality assurance and customer service in EA/Redwood Shores, Austin and EA/Virginia. The headcount reductions announced today in those locations reflect that consolidation.

Second, we've decided to dedicate more focus on Ultima Online. After pioneering the Persistent State World genre in 1997, UO continues to amaze us by generating greater and greater numbers of loyal subscribers. Rather than create a second world that would compete with UO, we'll dedicate our resources to improving the core product. There will be new lands, new creatures and a world that continually evolves. Some of the people who had been working on the UO2 Team will be reassigned to UO in Austin and other PSWs in development at Redwood Shores, Maxis and elsewhere in EA's global studio system.

The reduction in workforce will impact fewer than 200 people, the largest portion of which is associated with the pogo integration. Making tough decisions about staff reductions and profitability isn't easy - but making our online business profitable is the quickest way to demonstrate that EA intends to lead in this space. Long-term success in online gaming will translate to a win for our employees, consumers and shareholders.

EA.com/pogo is now one of the most popular sites on the Internet - not just among game sites, but among giants like eBay and MSN. When we introduce richly entertaining offerings like Majestic, Earth & Beyond and The Sims Online, the result is going to impress a lot of people.

In the next few weeks, I'll send more news about our progress and plans for the growth of EA.com.

John