Electronic Arts has abandoned plans to build a third production studio in Vancouver.

‘We are disappointed that our holiday slate is not meeting our sales expectations,’ EA CEO John Riccitiello said in a statement Thursday as he outlined across-the-board cost-cutting measures that include layoffs, consolidating North American facilities and reducing the company’s video games pipeline.

EA last May unveiled plans to build a new studio in Vancouver’s downtown Yaletown district, to complement its suburban facilities, including a Burnaby campus. But the world’s largest games publisher earlier this week revised its sales forecasts sharply lower amid a worsening economy and the crucial Christmas shopping season.

The California-based company in recent years has generated around $1 billion in annual sales from games conceived at its Vancouver facilities, which employ around 1,800 people.