developer Factor 5 laid off over 35 staff members last week, sources have confirmed to Gamasutra.
The job losses apparently comprised nearly half of the San Rafael, California-based studio's workforce, which now numbers 38. The news was first reported
by business website Edge Online.
Sources also tell Gamasutra that many of the remaining developers have taken pay cuts to allow them to continue working at the studio as it searches for new game deals.
Factor 5 was in the news earlier this month
when an employee's revealing blog post alleged severe financial difficulties at the studio. The blogger, animator Sam Baker, has reportedly now left the studio for good.
Some of the company's troubles were pinned on deflating publisher Brash Entertainment, with which Factor 5 had signed a multi-game development deal. It is unclear which projects, or how many, are still actively in production at Factor 5.
To top things off, the Edge report claims Baker is in danger of being sued for his internet indiscretion.