The studio behind Too Human and X-Men Destiny has verified that a significant portion of its workforce has been let go.
Silicon Knights' CFO Mike Mays said that 45 employees have been laid off, with just under 40 workers remaining, according to the Financial Post.
This is slightly better than 75 per cent staff cuts reported by sources yesterday.
Mays explained that the redundancies were made following Activision's decision to cancel the studio's next project. Silicon Knights' latest game - X-Men Destiny - was released in September.
"We just finished a project with [Activision] that got completed," he said.
"We had another project lined up that had been in the works for months, which had been green-lit and at the final second, at the high corporate level, the project got cancelled.
"We don't know why. Probably something to do with the publisher on their side, but that resulted in us having too many people so we had to do a lay-off."
Mays added that Silicon Knights is currently in negotiations for new projects, with plans to rehire the cut staff once the developer secured a contract.