Phoenix Labs had a round of layoffs last week, the Dauntless developer confirmed to GamesIndustry.biz today.
"We recently evaluated all ongoing development projects within Phoenix Labs to determine our strongest path in terms of success and sustainability," a representative said. "As a result of that evaluation, we felt the best way forward for the company was to focus on fewer development projects. This renewed focus offers the best opportunity for the success of Fae Farm and Dauntless, as well as the remaining unannounced titles in our portfolio.
"As part of the transition out of those projects, we worked diligently to find new assignments for as many employees as possible. While we succeeded in reassigning many people, there were cases where we had to part ways with some talented people. In total, about 9% of our total employees have been affected.
"In addition to severance and benefits coverage extensions, we've offered assistance for job placement in an effort to ease transition for all affected employees."
The cuts come just months after studio management secured backing to buy the company back from previous parent company Garena.
Phoenix Labs had originally been acquired by Garena early in 2020, and expanded with new offices in Montreal and Los Angeles later that year.
Dauntless remains the company's only released game, with the Switch-exclusive Fae Farm expected to arrive later this year.