As many as 60 staff are believed to have been laid off at NCSoft's Carbine Studios, creator of MMO WildStar.
Polygon heard from a source that up to 60 from a team of a "few hundred" had been let go, but no official comment regarding the number has been made.
Carbine community manager Tony Rey wrote on the game's forums: "Today NC West announced staff reductions across its Western operations. While this impacted several colleagues, the teams here at Carbine are committed to supporting WildStar to ensure you get the experiences you want well into the future. We wish all of our friends well and hopefully our paths will cross again in the future."
Elsewhere studio creative director Chad Moore tweeted in support of those WildStar devs who had lost their job.
"To my #WildStar teammates who were affected today: it has been a great pleasure working with all of you. You will be sorely missed."
NCSoft has also issued an official comment.
"Today we announced a restructuring of key operations within NC West. As a result of this restructuring, we are implementing staff reductions across our Western operations with the exclusion of ArenaNet. While decisions like this are always hard, they are necessary as we begin the implementation of a new strategy designed to strengthen our footing as a leader in global entertainment.
"Moving forward, we will continue to focus on our core development capabilities and the intellectual properties (WildStar, Aion, Lineage, and Guild Wars franchises) that have made NCSOFT what it is today. However, we are looking to move into new business segments like mobile and tablet games as well as explore emerging technologies.
"Again, the decision to reduce staff was not an easy one, and we sincerely wish everyone well in their next endeavours."
Worryingly for WildStar fans Carbine recently cancelled the game's Halloween and Christmas content in order to focus on important game fixes. This came after a server merge, itself a possible sign that the game could be in trouble.