A number of staff have lost their jobs at Texas studio KingsIsle Entertainment.
Tweets from employees, spotted by Gamasutra and later deleted, described ‘massive layoffs’ at the developer, with another saying the studio had ‘exploded’.
One staff member said that approximately 80 people have been made redundant, equating to around half of the workforce.
The creator of PC MMO Wizard101 subsequently issued a statement, confirming the losses.
“To verify, many talented employees were released as part of a reduction in force today at KingsIsle Entertainment, and we wish them the best,” it said.
“This coincides with a couple of unreleased mobile games being cancelled.
“The strategy is to refocus our efforts on our MMO games and polish our more promising mobile projects, many of which are still slated for a 2016 release.”