Electronic Arts to lay off 1,500

NEW YORK: Electronic Arts plans to cut its work force by 17 percent as it tries to align its business with a transforming video game industry.

The company announced the layoffs of 1,500 people just hours after it said it is paying at least $275 million to buy Playfish Inc, a maker of social online games popular on Facebook, MySpace and the iPhone. The layoffs are expected to save about $100 million a year.

"We are focusing on what works and what matters," Chief Financial Officer Eric Brown said in an interview.