Sony Online Entertainment has laid off 41 employees.
The publisher told IndustryGamers that the move was part of a drive "to increase operational efficiency and reduce costs".
Sony Online Entertainment is the publisher of massively multiplayer titles EverQuest and Free Realms.
The latter, a free-to-play kids' MMO, claims to have 10 million registered players on PC and is expected to launch on PlayStation 3 later this year.
Check out our Free Realms review elsewhere on the site.