(KRON) -- Electronic Arts is cutting jobs and shutting down its subsidiary games studio BioWare as part of its first major restructuring following its acquisition last summer by Saudi Arabia's Public Investment Fund. The company announced the moves in a memo sent out to employees Wednesday.
The memo, which was signed by EA President Cam Weber and Chief Studios Officer David Tinson, read in part, "over the past several months, we've taken a hard look at our business, how we operate, and what it will take to lead in this next era of interactive entertainment. We've challenged assumptions, confronted hard realities, imagined new possibilities, and made deliberate choices in order to deliver experiences for our players and to drive sustained growth."
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The layoffs will impact 3% of EA's total workforce. The Redwood City-based video game giant last reported having around 14,500 employees. The layoffs will impact around 400 people.
As part of the restructuring, EA will also be pulling the plug on Bioware. The Edmonton, Canada-based studio behind games like "Mass Effect," "Baldur's Gate," "Dragon Age," and Star Wars: Knights of the Old Republic," reportedly employs fewer than 100 people, less than a quarter of the total layoffs.
Bioware confirmed Wednesday that it had been closed down, writing in a social media post, "Fore more than 30 years, BioWare has been more than a studio. It has been a home for storytellers, developers, and the players who brought our worlds to life."
"Now, after more than three decades of shared adventures, BioWare is closing and early development on the next Mass Effect project is ending."
Going forward, EA said it would be focusing on three strategic priorities: deepening its core, expanding its reach, and transforming its business.
"These priorities will bring clarity and focus to your work every day, and so will the way we work," the memo to staff continued. "We've spent time listening to teams about what's working, what's getting in the way, and what you need to do your best work."
