The Vancouver-based studio Threewave Software has entered a "reorganisation phase" which has resulted in staff redundancies, it has been confirmed,
News of the studio's troubles first came via a Twitter post made by Ubisoft Vancouver employee Josh Smillie, which read: "The Threewave Vancouver studio has shut down due to no new contracts. RIP CTF gods."
Threewave CEO Dan Irish subsequently told Gamasutra the studio had not closed, but entered a reorganisation phase.
"Some, not all of our employees were given notices," he said. "We are trying to move forward in a manner that reflects today's realities."
Threewave is best known for its work on the first Capture the Flag mode for id Software's Quake. It most recently developed the multiplayer co-operative experience for the PlayStation 3 and Xbox 360 versions of Ghostbusters.