Ubisoft has confirmed layoffs at Red Storm Entertainment, the studio founded by author Tom Clancy and Navy veteran Doug Littlejohns.
The move was part of "a realignment of production priorities" according to the publisher, and does not impact the ongoing development of the latest game in Ubisoft's best-selling war franchise.
"Red Storm remains an integral part of Ubisoft's worldwide production team and will continue to work on the multiplayer component of Tom Clancy's Ghost Recon Future Soldier," a spokesperson told Kotaku.
"The decision was part of a plan to allow the studio to focus on its core expertise: developing innovative multiplayer experiences."
38 members of staff are affected by the redundancies at the Carolina studio, and are being offered the chance to work at other Ubisoft locations, said the spokesperson.
Red Storm Entertainment has worked on a number of Tom Clancy titles including Ghost Recon: Advanced Warfighter 2 and Amercia's Army: True Soldiers.