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EA Expects to Close Studios

Friday, Electronic Arts said in a filing with the U.S. Securities and Exchange Commission it intends to axe 117 jobs beginning in Q1, 2005. Recently, in the fourth quarte...
Friday, Electronic Arts said in a filing with the U.S. Securities and Exchange Commission it intends to axe 117 jobs beginning in Q1, 2005. Recently, in the fourth quarter of the 2004 fiscal year, the company closed one studio in Austin, Texas, and most of its Walnut Creek, Calif., studio where Maxis and Origin Systems employees worked, respectively. The filing stated: “The studio closures were the result of a strategic decision to consolidate local development efforts in Redwood City, California.” EA reported the majority of terminations will affect development and administrative positions. Earlier this month, Viacom Chairman and Chief Executive Sumner Redstone dispelled speculation that the company would acquire EA due to the high estimated asking price: $20 billion.

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