Silicon Knights has confirmed earlier reports of lay-offs at the firm.
According to CFO Mike Mays, "just under 40" employees remain at the studio formerly 97-strong studio. Earlier reports stated only 25 employees would remain at the company.
Mays said the 45 employees were let go due to a cancelled project.
“We just finished [X-Men Destiny] with [Activision Blizzard Inc.] that got completed,” he told the Financial Post. “We had another project lined up that had been in the works for months, which had been green-lit and at the final second, at the high corporate level, the project got canceled.
"We don’t know why. Probably something to do with the publisher on their side, but that resulted in us having too many people so we had to do a layoff.”
Mays went on to say that the firm's working on contract negotiations for new projects. Details on what these projects are was not revealed, but Mays said if greenlit, Silicon Knights plans to rehire the individuals who were laid-off.
“So hopefully this layoff will be short term,” he said.