2K Czech is set to close its Prague studio and will lay off a number of staff, the publisher has confirmed.
As reported by Eurogamer, some of the studio's employees are being relocated to its Brno office.
Ten "key" development staff from the Czech offices are also being transferred to the company's headquarters in Novato, California.
It is thought that Mafia 3 was in development at 2K Prague before the closure.
"We have relocated and consolidated our 2K Czech team from our Prague facility to centralise resources in our location in Brno. Additionally, we are transferring some development resources from Prague and Brno to 2K headquarters in Novato, CA," said a statement from 2K Games.
"This transition will both strengthen the integration of the 2K Czech team with our award winning development teams, and better align cross-functional business practices. As part of this realignment, we are adjusting our staffing levels, resulting in the elimination of some positions."