Three years after Electronic Arts opened studios to produce video games in Chicago, the office closed Tuesday as a cost-cutting measure and released 146 local employees, who will be recruited for reassignment in other EA studios.
The closing is part of a wider restructuring that will affect the jobs of 350 employees throughout the company.
Employees will return Wednesday and Thursday to interview with EA Human Resources people who are flying into Chicago to offer them reassignment in EA facilities throughout the world.
“All permanent full time employees who are not reassigned will be offered severance and outplacement,” said Jeff Brown, VP/public relations for the Redwood, California-based company.
“The decision to close in no way reflected on these talented people, or the intensity of their dedication,” said Brown, who is in Chicago for the closure.
Games division president Frank Gibeau, in announcing the closing to employees, said the Chicago studio wasn’t able to stay on a “reasonable path to profitability.”
In the past three years, the studio’s headcount had grown dramatically to 146 people currently from 49, while revenue from the games developed there had not, Gibeau said.
Gibeau said the Chicago studio had no expectation of hitting the company’s profit targets until fiscal 2011 or later.
The Chicago studio primarily worked on the “Fight Night” and “Def Jam” franchises, and had been developing a super heroes game based on Marvel Comics characters, which has not been released.
EA originally opened in the Chicago area in 2004 when it purchased a small Hoffman Estates company called New Effects.
One year ago the company moved with great fanfare to a five-story, state-of-the-art facility, reportedly built out and equipped at $25 million, at 215 W. Ohio St.
Electronic Arts is world’s biggest interactive entertainment software company with revenues of $2.6 billion. Founded in 1982, the company develops, publishes and distributes software worldwide for PCs and consoles.
EA is best-known for its EA Sports software brand, which includes FIFA Soccer, Madden Football, NHL Hockey, Knockout Kings, NBA Live Basketball, Tiger Woods PGA TOUR Golf, Triple Play Baseball, NASCAR, and others.
