According to a report on Game Reactor, Swedish developer Avalanche is to almost halve its studio headcount after the termination of two publishing contracts.
The 160-strong studio will lose 77 staff from its offices in Stockholm after development deals for two games, worth a total of $34m, fell through.
The two unannounced games will now be ditched as the studio works on its Just Cause sequel for Eidos and its Emote co-development, social game The Hunter.