Updated: Tue Nov. 10 2009 09:07:11

ctvbc.ca

California-based Electronic Arts, the entertainment software company behind such games as "Madden NFL 10" and "Need for Speed," announced Monday that it is cutting 1,500 jobs from its global workforce, including its Burnaby, B.C., operation.

Company spokesman Colin Macrae told ctvbc.ca Monday night that he could not say how many Burnaby workers will be affected, but it will be "significant."

Last year, the company closed its Vancouver studios and moved staff to its Burnaby facility.

The company said the reduction of 1,500 jobs -- about 17 percent of the company's workforce -- will result in annual cost savings of at least $100 million.

The recession has put a dent into consumer spending on video games, and as a result, the company will focus on its most popular titles, officials said.

The video game maker is also facing stiff competition from Internet gaming, played by tens of millions of people on social networking sites, such as Facebook.

On that note, the company also announced Monday that it had acquired Playfish Ltd., a maker of social online games, for $275 million.

"The acquisition accelerates EA's growth in social entertainment and strengthens its focus on the transition to digital and social gaming," the company said in a statement.

Larry Bafia, vice president for faculty and business development at the Vancouver Institute of Media Arts, told ctvbc.ca that his school's proximity to EA's Burnaby studios is a big draw for international students.

He said 20 percent of the students have a strong interest in gaming.

However, Bafia said he isn't overly concerned about students' abilities to find jobs after they graduate.

"It's always unfortunate for people who are made redundant. But at the same time, I try to look at these things as, 'Where's the door opening?'" he said. "There's still a healthy entertainment industry in Vancouver."

Bafia said there's more emphasis at the school now to provide students with a broad range of skills that they can adapt to multiple fields.

For instance, a program called "game art & design" is being rebranded "entertainment art for film, television and games."

"People have to be more flexible," Bafia said.

EA reported a second-quarter loss Monday of $391 million (U.S.).

The company said job reductions will be complete by March 31, 2010.