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EA will spend over $125 million laying off 5 percent of its workforce (www.gamedeveloper.com)

submitted 8 months ago by [email protected] to c/[email protected]

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[–] [email protected] 13 points 8 months ago (8 children)

"These charges consist of approximately $50 million to $65 million associated with office space reductions, approximately $40 million to $55 million related to employee severance and employee-related costs, and $35 million to $45 million in costs associated with licensor commitments," reads the filing.

The severance I get, but why is closing offices costing them so much. And what are “ licensor commitments?”

[–] [email protected] 30 points 8 months ago (1 children)

cause commercial rental is a commitment, if you can't find another company to take over your lease, chances are you have to pay the majority of left over amount + penalty + restoration. Licensor commitments are similar but probably on tech/software licensing, ie. server rentals, Maya/Speedtree licensing agreement for the site, whatever cloud service they use for backup and share stuff, etc. Those at bigger scale aren't paid year to year like your regular indie studio just subscribe to Adobe/Autodesk for app uses per seat.

[–] [email protected] 1 points 8 months ago

Probably all the hardware and shit they have at those offices, too. Likely all leased.

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