LucasArts has confirmed redundancies at its San Francisco headquarters, following widespread speculation of staffing and project cuts.
While the company has yet to confirm the number and nature of the layoffs, a statement acquiesced that "LucasArts is reorganizing its teams to better address the needs of the internal studio. Unfortunately, this means adjusting staffing."
Game blog Kotaku has reported internal sources as alleging 85 staff were lost in total - 60 developers and 25 from QA, as well as the claimed axing of two projects.
However, some of the losses may be attributable to the forthcoming completion of Star Wars: The Force Unleashed II.
There have been multiple hints of trouble at the Californian firm of late - including the loss of senior producer Haden Blackman and a remarkably fast turnover of presidents. The redundancies would appear to be current boss Paul Meegan's first overt action in the role.
However, the company is adamant that the bad news for affected staff does not imply a great collapse. "LucasArts continues to be committed to creating a first-class internal studio and to fostering relationships with trusted external partners in order to deliver quality games that amaze and inspire fans."
Despite the losses, the company has seen a number of high profile hirings of late - including former Ubisoft man Clint Hocking, who will act as creative lead on an unannounced project.