Publisher Activision has confirmed that is has closed internal studio Shaba.
The team was in its twelfth year, and had worked on Tony Hawk and Shrek titles, as well as the recently released Spider-Man: Web of Shadows.
"Activision continually evaluates the resources at our studio properties to ensure that they are properly matched to our product slate and overall strategic goals," said a statement from Activision.
"As part of this process, we recently made the difficult but necessary decision to close Shaba Studios. We are grateful for the studio's contributions and wish this talented team success in their future endeavours."
All 61 members of staff are affected. Earlier this week, Activision also reduced the headcount at the newly acquired 7 Studios, the team originally responsible for Scratch: The Ultimate DJ.