Nintendo is closing its warehouse and office in Großostheim, Germany, and laying off 130 workers, the company announced today.
Some of those job losses will also come from its office in Frankfurt, Germany, Nintendo said in a statement. Frankfurt will replace Großostheim as the Japanese gaming company’s European headquarters.
The layoffs come just as this year’s Electronics Entertainment Expo, or E3, is set to begin in Los Angeles. For the third consecutive year, Nintendo will not be doing a formal press conference at the trade show, but will instead announce new software via a pre-packaged digital reel called “Nintendo Direct.”
The company will have a physical presence on the show floor, however. It’s a pivotal year for Nintendo, as dismal sales of its latest gaming console, the Wii U, drove it to a $457 million operating loss in 2013.
Here’s the full statement from Nintendo of Europe:
Nintendo of Europe has entered into a consultation process on a number of changes it is intending to make to its European business which, in the long term, will better enable the European business to adapt to the rapidly changing business environment.
The measures include the consolidation of the current European headquarters in Großostheim (Germany) to Frankfurt (Germany), the closure of the warehouse and office in Großostheim, as well as outsourcing and reorganising some functions.
These intended measures have not been made lightly and have only been arrived at after thorough analysis and careful consideration. The intended measures will sadly have a direct effect on some of the employees based in the Großostheim and Frankfurt offices in Germany and would lead to the release of approximately 130 permanent employees.
Nintendo of Europe is committed to a fair consultation process with the local Works Council in Germany with the objective of providing clarity and support for all affected employees as soon as possible.
This article originally appeared on Recode.net.