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Update: Gamasutra received the following statement from a KingsIsle spokesperson:
To verify, many talented employees were released as part of a reduction in force today at KingsIsle Entertainment, and we wish them the best. 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. Fans of our MMOs should know that Pirate101 is soon to receive an update and will be going to Test Realm most likely next week. Wizard101 has new content updates in the works for both Summer and Fall 2016.
An affected KingsIsle staffer told Gamastura that approximately half of the Austin studio had been laid off, and put the number of affected staff at approximately 80. This number has not been confirmed by KingsIsle.
Original story follows:
Reports from affected staff on Twitter suggest that Texas-based Wizard101 developer KingsIsle Enertainment has seen a significant layoffs -- at least according to affected employees in their Twitter reports of the event.
The company rose to prominence in the latter 2000s with the launch of Wizard101, a successful PC-based, teen-focused MMO. However, the company has not launched a follow-up product that had nearly the success of that title.
Gamasutra has reached out to the company for comment but has yet to hear back.
If you were affected by these layoffs and would like to speak confidentially to Gamasutra, please email us.