Layoffs at one of Germany's biggest studios, Goodgame, could affect as many as 600 staff, according to an anonymous employee at the studio.
Speaking to Develop, the unnamed source suggested that “greater than a hundred” staff could be affected, “but less than 600”.
Goodgame had previously been suggested that more than 100 people could lose their jobs.
The source claimed however that at least 200 people would need to be let go given Goodgame’s plans to reduce the company to a single office campus.
Jobs of employees who moved to Hamburg within the past six months are also said to be at risk – which could affect as many as 40 employees from countries including South Korea and the US.
Goodgame said it would be creating a fund to reimburse the relocation costs for expat employees.
The source said however this would only reimburse expats from outside the EU up to 50% of their relocation costs - and nothing for those who relocated within Germany.
Speaking to PocketGamer.biz, Goodgame's Product Communications Manager Fabio Lo Zito confirmed that the number of job cuts would be in the hundreds, but was unable to confirm an exact number at present.
This is because the studio is waiting to see how many staff will take up its “larger severance package” for voluntary redundancies.
Lo Zito also confirmed the source’s claims about the state of the expat fund.
“Expats will be reimbursed, in addition to their severance package, with up to 50 per cent of their relocations costs if they move after leaving Goodgame Studios,” he said.
“Also, we have set up a hardship fund for expats.”
The job cuts come as part of Goodgame's plan to restructure its business, a plan which includes ending all development on casual and client-based browser games.