Too Human developer Silicon Knights has confirmed it has drastically cut headcount, letting 45 members of staff go.
The Canadian developer blamed a cancelled project for the redundancies, which it said had been shelved "at the final second."
"We just finished a project with [Activision Blizzard] that got completed," Mike Mayes, CFO, 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 cancelled. 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."
Yesterday unconfirmed reports suggested that up to 75 members of staff had been let go at the studio.
Canadian developer Silicon Knights has laid off 75 per cent of staff, according to a new report.
Two separate sources have told 1UP that only 25 staff remain at the Too Human developer, which most recently completed work on X-Men: Destiny for publisher Activision.
The company has received multiple handouts from the local government in the region, and most recently secured CAD $3 million in funding to kick off a self-publishing drive and recruit a further 80 members of staff.
GamesIndustry.biz has contacted Silicon Knights for further comment.