Eve Online developer CCP is to make more than 100 jobs redundant, the company has confirmed.
In a statement, CCP claimed it was spreading its resources too thin and had to contract its global headcount by “about 20 per cent”.
CCP had an international workforce of about 600 staff before the layoff operation began.
The downsizing will most severely affect staff at CCP’s Atlanta studio in the US.
“But select positions in our Reykjavik, Iceland office will also be affected,” CCP added.
“As we re-examine our outward relations, we are also taking time to re-evaluate our internal goals. In doing so, we have come to the conclusion that we are attempting too many things for a company our size.
“Rather than allowing this to persist, we have made the decision to sharpen our focus. Sadly, this means reducing our staff.
"We estimate that around twenty per cent of global positions will be affected by this process. These will be predominantly in our Atlanta, GA office, although select positions in our Reykjavik, Iceland office will be affected.”
Currently, the company is developing Eve Online expansions as well as World of Darkness and the PS3 game Dust 514.
CCP said that, while it will remain focused on updating Eve and launching Dust, the World of Darkness project will now be undertaken by "a significantly reduced team”.
Creative teams in Atlanta will also refocus on launching Dust 514, which is due for release next year.
“We are very sad to lose some of our talented and dedicated colleagues to this necessary process. Naturally we are making every effort within our means to help them find alternative employment. Decisions like these are difficult for all those involved and extraordinarily sad for all of those whose lives are affected.”
CCP has also admitted that its so-called 'golden goose', Eve Online, has suffered from a drop in user numbers.
This appears to be related to the uproar regarding virtual item policies, and CCP is currently offering significant subscription discounts to users who have quit the game.
But the company insists Eve Online is in “good health”.
“Our subscriber numbers are higher today than they were a year ago,” the company said.
“However, over the past two months, our subscribers have gone down from their peak this summer. We attribute this to our own mistakes and poor communications with our players. We are correcting that now.”