Layoffs have affected an unconfirmed number of staff at TimeGate Studios.
TimeGate president Adel Chaveleh has told Polygon, "Today, we had to make the difficult decision to let go of some great game developers. This is never easy, and we're doing all we can to assist those developers affected."
He added, "TimeGate is preparing, as is the entire industry, for the transition to next-generation consoles and new business models. As part of this reinvention, all projects and strategic initiatives continue to move forward at the studio."
While Chaveleh left out details on how many were affected, Polygon reports 'about 25' layoffs, citing unnamed 'sources' who also claim that the redundancies are connected to a publishing deal falling through.
TimeGate helped Gearbox with development on Aliens: Colonial Marines, which received mostly negative reviews, and was the subject of controversy after an alleged former developer criticised the management of the game's development.
TimeGate's previous work includes RTS game Axis & Allies, plus F.E.A.R. expansion Extraction Point.