UK developer Atomic Planet is to lay off a number of its 35 staff in order to cut costs.
Speaking exclusively to GamesIndustry.biz, managing director Darren Falcus confirmed the move, but added the studio was still very much in business and currently working on two projects signed to publishing partners.
"We're making a number of lay-offs to cut costs after the cancellation of a number of projects," said Falcus. "We're going through a tough time, as are most people, and we're making some cutbacks to reduce costs and continue to move forward."
A decision on the amount of staff to be made redundant has not yet been reached, said Falcus.
Recent titles from the company include Atari's Jenga for the DS and Wii, and Stealth Force 2 for Midas and Water Horse: Legend of the Deep for Blast, both released on the PS2.
The redundancies at Atomic Planet are part of a wider issue for the UK development scene, which has seen a number of high-profile studios start the year by cutting costs and associated staff.
TimeSplitters house Free Radical Design is currently in administration, with a decision due on the studio by the end of the month.
Oxygen Interactive confirmed this month that it hopes to sell off its London studio as it moves away from internal development, and Gusto Games also closed its Derby office this month, laying off all 14 members of staff.