Concerns are mounting inside BioWare as a massive debt-fueled acquisition and AI-centric restructuring plan could bring sweeping layoffs — and the future of the studio hangs in the balance.

According to Insider-Gaming, BioWare employees are already worried about the transition caused by the sudden change in ownership. Two anonymous sources said attention should be paid to the negative mood that followed the release of Dragon Age: The Veilguard. If the situation seemed bad then, imagine what some employees are thinking now. Many have been preparing since last year, building portfolios and looking for new jobs. It seems like only a matter of time. Despite receiving fairly positive reviews, The Veilguard failed to meet Electronic Arts’ expectations, reaching only half of its 3 million player goal by January. This resulted in layoffs, reducing the team to fewer than 100 people.

BioWare is now focused on developing the next Mass Effect, but whether they’ll have the chance to finish it remains uncertain. The current sentiment is that they’ll “keep working until told otherwise.” This is hardly a healthy environment, but as long as they’re paid, few plan to quit voluntarily. Insider-Gaming also reported that EA attempted to sell BioWare at one point, but no official deal was announced.

Mass layoffs may be on the horizon. According to the Financial Times, investors want to integrate the latest AI technologies into EA’s operations to reduce costs and manage its massive debt. This could mean replacing human developers and actors with AI tools. Bloomberg reports that the deal was partially financed by a $20 billion loan from JPMorgan Chase & Co. — the largest acquisition-related debt ever recorded.

On LinkedIn, Jason Schreier warned: “This will mean significant cost-cutting. Expect mass layoffs, more aggressive monetization, and many other measures. Interest payments alone could reach hundreds of millions annually. For context, this is nearly four times the debt of the Toys R Us leveraged buyout — and we all know how that ended.” BioWare could easily be one of the first studios targeted by mandatory cost reductions.

Joost van Dreunen, former CEO and co-founder of SuperData, commented on the $55 billion deal — the second largest in gaming history after Microsoft’s Activision Blizzard acquisition and the largest corporate acquisition ever, surpassing TXU Energy’s $48.4 billion deal in 2007. He noted that PIF, Saudi Arabia’s sovereign wealth fund, already owned about 10% of EA, making its participation easier. Their strategy is clear: spend huge sums to achieve market dominance, and with nearly unlimited capital, they could succeed.

Van Dreunen added that private companies are generally more insulated from market pressure than public ones, meaning EA’s new owners could prioritize long-term goals over short-term profits. However, PIF is not alone — Silver Lake and Affinity Partners may have different priorities.

Source: WCCFTech, Insider-Gaming, Financial Times, Bloomberg