Fishlabs Entertainment, the company behind the Galaxy on Firefranchise, has announced that it has laid of 25 employees as the result of "internal restructuring".
The restructuring - which largely resulted in employees from the marketing, art, and programming departments being let go - is taking place in an attempt to significantly lower the overall running costs of the company.
Early reports had suggested the company had been dissolved, but Fishlabs is keen to clarify that "business dealings are being carried out as usual", despite the firm's self-administered state.
'The most difficult day'
As such, Fishlab will continue with plans to soft-launch its strategy MMO Galaxy on Fire - Alliances in a month, whilst also focusing on releasing a new brand game in cooperation with the Volkswagen Group.
Galaxy on Fire 2 - Supernova
"This has been an extremely hard cut and the most difficult day for me and Fishlabs co-founder Christian Lohr in the history of our studio," said Michael Schade, CEO of Fishlabs Entertainment.
"We actively support our former employees in finding new jobs and we are confident that our expertise on mobile and our good industry relations will be helpful in that undertaking.
"With a slimmed-down studio as well as our first free-to-play title Galaxy on Fire Alliances plus another project for Volkswagen China in the pipeline, we are now well-prepared to get new investors on board."