Vancouver studio Slant Six has enacted a round of temporary layoffs.
As reported by Games Industry, the developer said those affected will get 13 weeks of benefits and employment insurance.
If they are not rehired at the end of that period the layoff becomes permanent.
Prior to the layoffs, the Resident Evil: Operation Raccoon City studio had over 60 employees, but it did not say how many have now been laid off
"This necessary measure has been taken to reduce the size of our team and to decrease interim operating costs while we continue to negotiate new business," read a statement from Slant Six.
"Temporary layoffs provide us with a time period to keep everyone's employment position open with full benefits. The intention is to reinstate all of the people affected when new projects or funding has been secured."
This is the third time the company has made temporary layoffs since the 2010 release of SOCOM: US Navy SEALs Fireteam Bravo 3.
Though all those affected were re-hired in that instance, but it wasn't the same case last year when only a portion of those let go after the release of Operation Raccoon City were rehired.
People from across the industry have extended their condolences to the team, and Slant Six took the chance to say thanks over Twitter.
"Heartfelt thanks for all the best wishes folks," it said.
"We're with friends today, and back to making games tomorrow."