Electronic Arts has announced that it intends to cut 6% of its global workforce, the equivalent of between 500 and 600 employees. The news comes on the back of its third quarter financial results for 2008, which indicated increased losses for the publishing giant.

AP has reported that the cuts will spread across the company's entire global workforce, and EA hopes to save around $50 million (£30 million) per year as a result.

EA's losses totalled $310 million (£190 million) for the third quarter of 2008, despite a sales increase of more than 40%. Last year's third quarter also saw the company face a loss, though the amount was a much smaller $195 million (£120 million).

"Considering the slowdown at retail we've seen in October, we are cautious in the short term," said EA's chief executive John Riccitiello. "Longer term, we are very bullish on the game sector overall and on EA in particular."

EA CFO Eric Brown: "We have heard that retailer foot traffic is down in general, which is a negative. But we also know that retailers are increasing their shelf space for video games ahead of the holidays."

Following the news of the planned layoffs, EA's share price has seen a 14% drop.