Krome confirms layoffs in Melbourne and Brisbane

Australian developer Krome studios has confirmed significant job losses across its business, as well as the potential suspension of its Adelaide office, blaming the industry's challenging economic climate.

Speaking to GameSpot Australia, the company corroborated the reports of job losses, saying that an undisclosed number of staff have been put on notice pending the outcome of the studio's current development projects.

"As we have seen by other recent announcements, the games industry is still going through economic challenges which Krome is not immune from. These times are challenging and as a result, we have put some of our staff on notice pending the outcome of a number of upcoming projects," read Krome's statement.

"It is important to note that this action has not affected the development of our current projects, both announced and unannounced, which we are continuing to work on. Additionally, Krome remains firmly committed to the future of all three studios," the statement ended, implying that rumours circulating this week of the studio's complete collapse appear unfounded.

The future of the Adelaide studio remains in the balance, a decision which will be made once the four-week notice period has passed. Reports on twitter seem to indicate that members of Krome staff have begin applying for employment elsewhere.

The past year has proven a difficult one for the studio, with it having suffered a series of layoffs in that time.