Electronic Arts is alleged to be cutting between 500 and 1,000 jobs due to Battlefield 3 and Star Wars: The Old Republic performing below expectations. EA has downplayed the reports, though it wouldn't deny that jobs have been lost.
"There are no lay-offs as such, we always have projects growing and morphing," said the company. "At any given time there are new people coming in and others leaving. EA is growing and hiring and building teams to support the growing demand for digital games and services."
The layoffs were said to be a result of disappointment over Battlefield 3 and The Old Republic. While both games enjoyed good launches, it's believed they didn't do well enough considering the obscene amounts of money EA had put into marketing and licensing. If I'd paid to have Battlefield 3 plastered over everything in existence, I'd probably expect better as well.
Of course, any folk who lost their jobs are probably blameless in that scenario, as they so often are.