Silicon Knights, the Canadian studio behind Too Human and recent flop X-Men Destiny, has laid off 72 of its 97 staff, according to two credible independent sources speaking to 1UP.
"Silicon Knights has had massive layoffs. They are now down to a core staff of 25 people," said one source.
The other said: "It may interest you to note that Silicon Knights laid off all but 25 employees today."
The layoffs follow news that the studio received a grant worth between three and four million Canadian dollars from the government in July - money intended to nearly double the studio's headcount from 100 to 180.
Silicon Knights is yet to comment on the reports.