Dead Rising 2 developer Capcom Vancouver has let a number of staff go, but isn't on the rocks.
After rumours of lay-offs arose, reports began circling that the studio was in difficulties.
"To paraphrase Mark Twain – the reports of our death are greatly exaggerated," the developer's Twitter responded.
"Capcom Vancouver has let go 7% of our employees as a result of unsuitable fit with the studio goals. We’re still growing and aggressively seeking great talent."
In a statement, the publisher said: "Capcom Vancouver has laid off 20 staff as part of its regular periodic assessment of overall studio goals. The studio is actively hiring talented staff to support its goal of delivering high quality games."
Cyclical lay-offs are an accepted if not exactly welcome part of games development in 2012; few teams have the resources to employ concept artists through an entire development cycle, for example.