A round of job cuts has been instituted by Hangar 13, a subsidiary of Take-Two Interactive Software.
In a virtual meeting, the studio president, Nick Baynes, called the news horrible and said he did not expect further layoffs. The number of employees affected is not known.
A spokesman for Take-Two did not respond to a request for comment.
The game studio, which has offices in Novato, California;Brighton, United Kingdom and the Czech Republic, recently told staff that they weren't planning layoffs following the cancellation of one of its major games.
Two games are being worked on by Hangar 13. Nero is a new entry in the Mafia series. Some Hangar 13 staff are helping other developers. Baynes said that the company tried to find roles for everyone at Hangar 13 but those who couldn't fit were removed.
Baynes became president after Haden Blackman left.
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