It is a tough time to be in tech. Electronic Arts (EA) has announced that it is shutting down the gaming studio BioWare along with plans to lay off about 400 employees globally.

The decision was announced by EA executives Cam Weber and David Tinson via an internal memo.“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,” they wrote.EA is shutting down BioWareBioWare, founded in 1995, is known for some iconic RPG titles such as the Mass Effect franchise and Dragon King. “We’ve made the decision not to move forward with this development, which means we’re closing the studio and our Edmonton workspace,” Weber and Tinson added. “BioWare is a legendary studio that helped define the role-playing genre, and we do not take this decision lightly.”In a post on X, BioWare confirmed that it was ceasing operations. “After more than three decades of shared adventures, BioWare is closing and early development on the next Mass Effect project is ending,” the post said. BioWare shared on X.

BioWare was acquired by EA in 2007. The studio faced difficulties following Mass Effect: Andromeda and Anthem, while its most recent release, Dragon Age: The Veilguard, missed sales expectations and led EA to reduce the studio’s workforce last year.It is also laying off workersApart from the end of BioWare, EA is also eliminating about 400 jobs, roughly accounting for 3 per cent of its global workforce.

EA is said to have a workforce of around 14,500 employees. 50 of the impacted roles were reportedly at BioWare.

This marks EA’s first major restructuring since it went private following a $55 billion all-cash acquisition by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake and Affinity Partners. The leveraged buyout placed around $18 billion in debt on EA’s books, and the company has outlined plans to save up to $700 million, partly by reducing research and development costs.The EA executives insisted that the company will continue investing in its sports titles, Apex Legends and the Battlefield franchise.

Respawn and DICE will collaborate on a future project, reportedly identified as Star Wars: Battlefront 3. The company also remains committed to Marvel’s Iron Man and the next Star Wars Jedi game.EA’s announcement comes amid a difficult time in the gaming industry.

Microsoft’s Xbox plans to cut a total of about 3,200, which may include more layoff rounds soon. Xbox has already merged or divested in multiple studios as part of its restructuring.- Ends