Just Cause developer Avalanche Studios has served three months notice to around 20 employees, GamesIndustry.biz can reveal.
The development of Just Cause 2 for Eidos and The Hunter for Emote games will not be affected, with CEO Christofer Sundberg confirming that a third project is in development at the studio.
"It is a difficult business climate, but this is not nearly on the scale of the redundancies last year," said Sunberg, referring to the laying off of staff last October.
Although the third project is currently under wraps, Sundberg did confirm that it is in development with a publishing partner. Eidos has also clarified that Just Cause 2 is unaffected by any changes at Avalanche and will be on show at E3 next month.
"As any other company we need to manage risks and sometimes that unfortunately means that we have to give notice and lay off staff. It's not more complicated than that," added Sundberg.