Kuju Entertainment has told GamesIndustry.biz that it is laying off a number of staff at its studios in the UK and US.
Employees have been informed, and work is ongoing to place some of those affected elsewhere within the group.
"Kuju has generally adopted a more cautious approach at the start of 2009 in light of market conditions," Kuju boss Ian Baverstock said.
"As a developer with nearly 20 years experience of game development trends, we know how important it is to have the right number of people with the best mix of skills for the scale and nature of our projects.
"Up to ten design or art posts at Zoe Mode are at risk; although total headcount in the studio is expected to remain broadly level at around 150 as roles are opened in other disciplines. There have also been some redundancies in Kuju America, a small number in Chemistry in Sheffield and Kuju's corporate headquarters in Shalford," he added.
Although the group has started the year by reducing headcount, Baverstock added that he still expects the company to grow in 2009.
"We are continuing to recruit in our other studios and we expect to find roles for some of the redundant staff in those studios. Overall Kuju is expecting continued growth in 2009 although probably not at the 25 per cent growth levels of 2007 and 2008."