Aliens: Colonial Marines co-developer TimeGate Studios has been hit by layoffs.
Around 25 people are expected to have been made redundant, which Polygon claims is connected to a publishing deal which fell through earlier this month.
In a statement provided to the site, TimeGate's president Adel Chaveleh confirmed the layoffs, saying that letting staff go is "never easy".
"Today, we had to make the difficult decision to let go of some great game developers," said Chaveleh. "This is never easy, and we're doing all we can to assist those developers affected.
"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."
TimeGate Studios was established in 1998. The developer is most famous for its Section 8 series and its collaboration with Gearbox Software on Aliens: Colonial Marines.