Californian studio Slipgate Ironworks has shed up to 50 staff, according to Kotaku.
The developer, which is owned by Gazillion, was founded by renowned designer John Romero in 2006 and was working on an unannounced MMO. According to a Gazillion statement, that MMO is still in development.
"As part of our focus on reaching the widest possible audiences with breakthrough MMO entertainment, we decided to change the format of our project at Slipgate Ironworks to better achieve this aim," it read.
"The game we'll launch will build on the efforts to date with a smaller core team and the other Slipgate staff are already in discussions around the many open positions across our slate of projects. 2010 will be an exciting year for Gazillion as we bring several groundbreaking MMOs to markets worldwide. We're tremendously appreciative for the dedication and creativity of our employees who make this all possible."