Midway has let a number of staff go from its Chicago studio as development on upcoming titles has wound down.
The news, first reported by Kotaku, comes on the heels of the resignation of chairwoman Shari Redstone and Midway's latest financials confirming operating losses for the publisher.
The firm also recently appointed interim CEO - and former studios boss - Matt Booty as permanent CEO.
Around 20 to 30 staff are believed to have gone from the team which worked on titles including DC Universe vs Mortal Kombat. It's now thought the studio will focus solely on Mortal Kombat titles going forward.
A statement from Midway published by Kotaku explaining the redundancies explained: "This fall, the Chicago studio shipped two major frontline games — Blitz and soon MK — and also wrapped up remote support for TNA. As large projects are completed, it is expected for any multi-team studio to evaluate the appropriate staffing levels and team composition needed going forward. As a result, a small number of employees here in Chicago have been impacted and others reassigned. No other changes are being made at this time. Our Chicago studio will continue to be the home of the Mortal Kombat team, and we have several support groups and major prototype teams working in the facility as well."