After being bought by EA PopCap now facing massive layoffs.

piscian18

piscian18

[H]F Junkie
Joined
Jul 26, 2005
Messages
11,020
After being bought by EA PopCap now facing massive layoffs

Quick everyone act surprised.

PopCap confirms a series of layoffs for its Seattle studio and considers the future of its Dublin branch.

Following rumors of imminent layoffs at PopCap Games, co-founder John Vechey released an official statement earlier this afternoon through the PopCap Blog. In it, he confirmed that PopCap has laid off approximately 50 staff members, primarily in its Seattle headquarters, and is even reconsidering the future of its Dublin office.

"Today's news is something you expect periodically from a company in a fast-changing industry," Vechey said, "but it sucks if you're one of the people losing his or her job. These people are our friends and we don't like doing this."

The instinctive reaction to this information, as noted by Duke Nukem creator George Broussard when he broke the news, is that PopCap owner Electronic Arts is responsible for the layoffs, but Vechey claims this isn't the case. Vechey explained that there have been several very dramatic changes to the games industry and economy that necessitated this change, and that if it were not for EA's resources, the cuts may have been much higher.

"I know I wouldn't choose to be anywhere else right now," he said. "I've seen speculation that EA is no longer letting PopCap run independently, and that's simply not true ... The decision to reorganize was 100 percent made by us, with no pressure from EA ... We're glad to have those resources supporting us when a lot of other independent studios are struggling. In addition, some of the people affected by the reorganization may be retrained and reassigned to other jobs in the EA studios. If we didn't have EA behind us, the cuts would have been worse."

Even if some of PopCap's former staff can find new jobs in other EA studios, the situation is still far from ideal. Developers like Telltale Games have already opened their doors, and hopefully others will follow. We here at The Escapist extend our sympathies to all those affected by the layoffs.

Below is Vechey's statement in full.

Twelve years ago we founded PopCap. We never imagined the games we'd make, the vast number of people who would play those games, or the success that followed. We also never imagined the challenges that we would face with markets, platforms and customers. Most importantly, we never imagined the hard decisions we'd have to make.

Yesterday we announced the much-anticipated sequel to Plants vs. Zombies. That's very exciting. A lot of people have been asking about it. The game will come to fruition in the spring of 2013.

That's the good news.

But this morning we informed our employees about a reorganization in our studios that will include a "Reduction In Force" in our North American operation - mostly in our headquarters here in Seattle - and an "exploratory consultation" to evaluate the future of our PopCap office in Dublin, Ireland.

And now in English: "Reduction In Force" means that some people are losing their jobs. "Exploratory consultation" means we're talking to our Dublin team about the future of that office and whether we can find a path to improve our profitability in Europe without having to close the operation. Today's news is something you expect periodically from a company in a fast-changing industry, but it sucks if you're one of the people losing his or her job. These people are our friends and we don't like doing this.

We've made hard decisions before, even had cuts before - at this time in North America there are about 50 people who will no longer work at PopCap. We've hired aggressively this past year and PopCap is still growing. Even with the cuts we expect to end the year with roughly the same number of people we started with.

A little context on why we're making cuts in some areas while we're investing and expanding in others: In the past year, we've seen a dramatic change in the way people play and pay for games. Free-to-play, social and mobile games have exploded in popularity. That happened fast. Surprisingly so. The change in consumer tastes requires us to reorganize our business and invest in new types of games on new platforms. It's a completely different world from when we started.

There's also an economic component to the reorganization. To stay in business, we need to manage costs, improve efficiency and maintain a profit. We've been able to invest in creative new games like Peggle and Plants vs. Zombies because we had a high profit business. That business is challenged, and if we don't adapt, we won't be able to invest in new IP. That sounds harsh - but if we don't stay in business, no more plants, zombies, jewels, frogs or worms.

One year ago, we decided to integrate PopCap with EA. I know I wouldn't choose to be anywhere else right now. EA has provided a lot of resources for us to grow and allowed us to operate as an independent studio. I've seen speculation that EA is no longer letting PopCap run independently, and that's simply not true. The founders, CEO, and executives who were in charge of PopCap still are. The decision to reorganize was 100 percent made by us, with no pressure from EA. EA has a diverse business with games on consoles, PCs and practically every other platform under the sun. We're glad to have those resources supporting us when a lot of other independent studios are struggling. In addition, some of the people affected by the reorganization may be retrained and reassigned to other jobs in the EA studios. If we didn't have EA behind us, the cuts would have been worse.

What's next? Part of making changes is to stay healthy and viable. Good companies don't wait to change until it's too late. We're growing quickly into new areas of mobile and social, and are expanding in new markets like Japan and China. And there are many more great games to come from PopCap.

While today's news is distressing in some ways, especially to those of us who've been with PopCap from the beginning, we're sincerely excited about the company's future prospects and committed to continuing to lovingly craft the very best and most broadly appealing video games in the world.

John Vechey, Co-founder
Click to expand...

http://www.escapistmagazine.com/news/view/119194-PopCap-Co-Founder-Confirms-Layoffs


Translation = Popcap is now City 17. Please see Dr. Breen... I mean John Vechey for any questions or concerns. I hope the "retrained and reassigned" like making mappacks.
 
Seems they just over-hired and are cutting back...

We've hired aggressively this past year and PopCap is still growing. Even with the cuts we expect to end the year with roughly the same number of people we started with.
Click to expand...

Err... I mean EA are the devil and we should all express our rage in these here interwebs! :p
 
I remember, when someone from Bioware said something to the effect of, "No really, this really draconian DLC idea was actually our own idea, EA had no part in this at all. We came to them, not the other way around."
 
Not like PopCap made AAA titles, people can only do Bejeweled and Peggle for so long and then the sales dry up. It's actually pretty normal for game studios to lay people off, not sure why there's drama about that.
 
Thuleman said:
Not like PopCap made AAA titles, people can only do Bejeweled and Peggle for so long and then the sales dry up. It's actually pretty normal for game studios to lay people off, not sure why there's drama about that.
Click to expand...

Because EA is involved and we must all hate EA regardless of any logical explanation! Get with the program! :p

Though honestly it doesn't seem like anything significant, the bit I quoted said they'll still be at the same size after the layoffs as they were at the start of this year, so all it says to me is they over hired and now they're just balancing it out. Over hiring can happen for lots of reason, expecting more work than actually exists, or maybe you needed to meet a deadline and didn't have the manpower and so needed to hire more people and now you need to get rid of them because you can't afford the salaries.

Shit happens, people get hired, people get fired. If they were actually getting massive cuts to the point where they were a shadow of what they used to be and/or being disbanded, ok I might see some small point for drama... but they're just getting cut back to their original size so who gives a fuck.
 
We're glad to have those resources supporting us when a lot of other independent studios are struggling. In addition, some of the people affected by the reorganization may be retrained and reassigned to other jobs in the EA studios. If we didn't have EA behind us, the cuts would have been worse.
Click to expand...

Then there shouldnt be any reason for the layoffs right? :p

I do like PopCap but hate EA. Still looking forward to PvZ 2 though! :)
 
One of my friends got the cut. :(

And to think, just a few months back I was presenting my application to them, then *BAM* - hiring freeze. Guess this is something I should have seen coming.
 
In this economy trust me laying 50 people off is not "day to day". I've witnessed people breaking down in a boardroom because management likes to get cute and spring this shit on people at the last minute so they don't have to worry about everyone exiting the building in force or work schedules breaking down from morale.. My last company pulled some friday after noon layoffs. Of 5000 people only 98 got layed off and everyone was just in a blackhole mood for months. I got out as soon as I could. Considering how small I'm assuming popcap is that's gotta be scary.

more news BTW

PopCap has laid off Plants vs. Zombies creator George Fan, the day after announcing a sequel to the game.

You may not know George Fan by name, but I guarantee you know his work. His is the brain behind Plants vs. Zombies, one of the most wildly successful "casual" games of all time, a tower defense title that began life in 2009 as a fairly typical PopCap PC release and is now available on pretty much every platform known to man. Sunflowers and zombies have become PopCap's most instantly recognizable flagship characters, and after releasing no less than three separate retail collector's editions, the studio finally announced on Monday that a sequel is in development.

Sadly, and kind of amazingly, the man who got the ball rolling won't be around to help with the follow-up. PopCap confirmed yesterday that it was in the process of laying off approximately 50 employees, and while it didn't name names at the time, included among them is Senior Game Designer and Plants vs. Zombies creator George Fan.

Any layoffs are regrettable, but cutting Fan from the lineup is particularly inexplicable. As Susan Arendt noted in a 2009 interview, Plants vs. Zombies was his baby from start to finish. And he was hardly a one-hit wonder, having also designed the 2002 PopCap hit Insaniquarium, which actually helped inspire Plants vs. Zombies.

The timing is ugly, coming on the heels of the Plants vs. Zombies 2 announcement as it does, and the specter of EA, which acquired PopCap a little over a year ago for $750 million, also looms large. PopCap claimed that EA had nothing to do with the layoffs and that without its financial support the cuts may have been even deeper, but that still leaves a couple of pretty big questions unanswered. Why George? And why now? Business is business, but this just does not look good.
Click to expand...

http://www.escapistmagazine.com/news/view/119212-PopCap-Lays-Off-Plants-vs-Zombies-Creator
 
Last edited:
There is a glut in this type of casual gaming. Much of it is crap with a few that are good. Bubble = burst.
 
He created Insaniquarium? I actually liked that game. Was hoping for an Insaniquarium 2, but oh well... (yes, I know the game's like 8 years old)
 
I have spent more time on Plants VS Zombies than game 10 times as expensive.

Hell I have asked Baby Santa for PvZ 2 for like 5 years now.



on a second note good thing I decided not to get a job at PopCap.
 
Why get rid of the creator of Plants vs Zombies? That just doesn't sound right. Maybe he left on his own to start a new company with the Bejeweled and Peggle creators???
 
travanx said:
Why get rid of the creator of Plants vs Zombies? That just doesn't sound right. Maybe he left on his own to start a new company with the Bejeweled and Peggle creators???
Click to expand...

Nope they clearly state they laid him off.
 
piscian18 said:
In this economy trust me laying 50 people off is not "day to day". I've witnessed people breaking down in a boardroom because management likes to get cute and spring this shit on people at the last minute so they don't have to worry about everyone exiting the building in force or work schedules breaking down from morale.. My last company pulled some friday after noon layoffs. Of 5000 people only 98 got layed off and everyone was just in a blackhole mood for months. I got out as soon as I could. Considering how small I'm assuming popcap is that's gotta be scary.
Click to expand...
Again, they hired around that many people in the space of a year and now they're firing that many people. They over stretched for whatever reason and now they're correcting. It sucks to get fired and all that, but these things do happen, I'm guessing even more so in the gaming industry where the need for work fluctuates massively depending on the project you are doing and even what part of the project cycle you are in at that time.

If they were happily chugging along with 400 or so employees for years and then all of a sudden EA takes hold and they start firing people, yes, it would be shit. But to me it seems more like they sold their souls to EA hoping to grow, employed some 50 people after being taken under EA's wing so to speak, and have over stretched and so are having to reconsider their position and cut back some dead weight. You can't just hire 50 new people if the money isn't there to pay them, and if you projected the money would be there and it's not, things aren't going to go well and people are gonna have to get cut and things are gonna need restructuring. Honestly I was surprised to read on wikipedia that they have around 400 employees anyway, that's huge for a development studio.

more news BTW

PopCap has laid off Plants vs. Zombies creator George Fan, the day after announcing a sequel to the game.



http://www.escapistmagazine.com/news/view/119212-PopCap-Lays-Off-Plants-vs-Zombies-Creator
Click to expand...

That just sounds weird to me. There must be a reason for it like either he wasn't happy there anymore or maybe was asking too much money. You don't just fire the creator of a successful game for no reason, not even if you're the devi... err, I mean EA :rolleyes:
 
Last edited:
Tudz said:
That just sounds weird to me. There must be a reason for it like either he wasn't happy there anymore or maybe was asking too much money. You don't just fire the creator of a successful game for no reason, not even if you're the devi... err, I mean Popcap :rolleyes:
Click to expand...

FTFY (thats what they said anyway :D)
 
Geee.....a big corporation buys a smaller company and everyone's surprised there are layoffs? Welcome to bankrupt corp rule #1: Buy company, lay off the people who made the company good.

The last company I worked for the same thing happened. They fired the people who made the joint what it was and put in their "managers" who didn't know jack shit about our product. Result: 3 years alter they close the place and can everyone.

Bottom line: if a big corporation is going to buy the company you work for, look for new work. They ALWAYS layoff people. Every. Single. Time. Prove me wrong that the majority of corporate takeovers don't result in layoffs. Prove it.
 
Fire the guy responsible for Planets Vs Zombies, then go on to make a sequel and monopolize on his work, that's just fucking disgusting.

Sounds like the studio exploded out of the casual games market with some seriously good casual game hits such as peggle and PvZ but quickly outgrew their niche, I don't think it's a market you can dominate in for long because casual gamers are extremely fickle and serious hits in that market are almost out of complete luck, it's a hard thing to deliberately engineer that kind of hit I think.
 
Buxaroo said:
Geee.....a big corporation buys a smaller company and everyone's surprised there are layoffs? Welcome to bankrupt corp rule #1: Buy company, lay off the people who made the company good.

The last company I worked for the same thing happened. They fired the people who made the joint what it was and put in their "managers" who didn't know jack shit about our product. Result: 3 years alter they close the place and can everyone.

Bottom line: if a big corporation is going to buy the company you work for, look for new work. They ALWAYS layoff people. Every. Single. Time. Prove me wrong that the majority of corporate takeovers don't result in layoffs. Prove it.
Click to expand...

100% correct.
People don't realize that to little nobodys like us layoffs are a horrible thing. To Shareholders and Corporate officers layoffs are awesome. This is why a faltering company announces layoffs and their stock shoots up, happens all the time.

Popcap had everything going for them, great, pretty much the best casual games. I want my PEGGLE MMORPG!!!!
 
Jellylesg said:
A person reacting to an editorialised title and using it to opine instead of reading the content and discerning the true meaning... ufuknshittenme?

http://blog.popcap.com/2012/08/21/popcap-update-from-john-vechey/

I mean aaaah my knees oh god what's happening my knees they're out of control someone help me please I'm so scared I can't control my knees
Click to expand...

It's still more vague apologies which makes it more weird. If everything is on the up and up why be so desperate to dissuade curiosity? No matter how you cut it 50 people is 50 people. "Oh we went on a hiring frenzy, found out our management is fucking retarded and you don't have a job. Sorry. Also Dublin you're fired too" That's literally what they're trying to make it out to be and that doesn't sound any better than "EA fucked us"

EA is known for throwing money around and then having fine print that allows them to yank it out from under you whenever they want. I suspect this is the cause. EA likely forecasted a large budget for Popcap and then since things have really started hitting the fan yanked it out from under them.

To put it in perspective a cheap employee costs what 50k? We're talking 30K and hiring costs. So on the lowest end that's what 2.5 million of their budget that just disappeared? My numbers have got to be extremely low.

Something in the budget forecast would have to have gone 180 on them to just have to suddenly drop 50 people. Popcap can not be that big. Weren't not talking a 5000 employee company. This lay off included the PVZ guy thats a big friggin deal.

stevedave said:
snip*.
Click to expand...

Dude please I like this thread the way it is. Open.
 
Please keep the thread on topic, which is the gaming industry. Political discussion goes in Gen[M]ayhem / Soapbox, not here.
 
You must log in or register to reply here.
Back
Top