Electronic Arts continues to reshape its business with news of up to 250 layoffs at its Montreal studio, Gamasutra reports.

A source close to those at EA Mobile in Montreal - but not an EA employee - told Gamasutra that layoffs took place yesterday. A separate source with direct contacts to EA Montreal developers said that between 200 and 250 people were released, with all in-development projects shut down.

The studio will now be slowly downsized with the aim to carry out a "complete shutdown", a source added.

However, EA has said that whilst layoffs have taken place, the number is not as high as sources have indicated and EA Montreal will not close.

"EA is sharpening its focus to provide games for new platforms and mobile," a statement from EA read. "In some cases, this involves reducing team sizes as we evolve into a more efficient organization.

"These are difficult decisions to let go of good people who have made important contributions to EA, and whenever possible we retrain or relocate employees to new roles. Streamlining our operations will help ensure EA is bringing the best next-generation games to players around the world."

EA has not confirmed in which studios layoffs took place, but a Tweet from BioWare Montreal studio director Yanick Roy confirms his team is unaffected.

Source: Gamasutra