More than twenty workers at Lightbox Interactive - the studio responsible for Starhawk - have lost their jobs amid a cost-cutting operation.
Lightbox President Dylan Jobe confirmed on Wednesday that 24 workers will be affected by the downsizing.
"Lay-offs always suck but they are an unfortunate reality of business sometimes," Jobe told Joystiq.
"The best we can do is try and treat our people with respect during the shocking transition of a lay-off."
Lightbox Interactive's significant downsizing will result in the smaller group switching focus to iOS titles.
Since its release in May, Starhawk has received continued online support from the studio, including free maps and game modes.