P45s are reportedly being handed at Fallout: New Vegas developer Obsidian Entertainment, with senior staff among those made redundant.
The scale of the job cuts is as yet unclear but a number of staff have Tweeted that they received their marching orders from the California-based studio earlier today.
As collated in a forum post on the developer's website, it seems that redundancies include producer Akil Hooper, associate producer Theresa Treadwell and art director Joe Sanabria.
"11 years, nearly a dozen shipped titles, Designer, Lead, Producer. 1 cancelled game, survived 7 layoffs, 8th got me. Not a bad track record," read Hooper's Tweet.
Founded in 2003, Obsidian's credits include Alpha Protocol, Neverwinter Knights 2 and Star Wars: Knights of the Old Republic II: The Sith Lords. Its next release is Dungeon Siege 3 for Square Enix on PC, PlayStation 3 and Xbox 360, due in June.