IGA Worldwide, the in-game advertising outfit that has worked with publishers like Activision and Codemasters, has seen a number of job losses.
Co-founder Justin Townsend confirmed to Gamasutra that less that a quarter of the current staff had been cut, and that the company would be revealing the new strategy behind the redundancies next week.
In the past the company has also worked with EA, Valve and Atari, delivering dynamic advertising to games like Test Drive Unlimited and MLB 09: The Show.
Co-founder Ed Bartlett resigned from the company just over a year ago, but had seemingly high hopes for it.
"With new funding in place and signs of a resurgence in the advertising market, the company is extremely well placed to capitalise on renewed industry confidence and market growth," he said.
IGA also made cuts in 2008, laying off a quarter of staff, and adapting its strategy.