Around 24 staff have been let go from Just Cause 3 and Mad Max developer Avalanche Studios.
The job losses come as Avalanche wraps up development on Just Cause 3, which is due to launch worldwide on 1st December.
2015 has been a busy year for the studio, which also shipped its Mad Max spin-off back in September.
Earlier in the year Avalanche also launched PC hunting simulation The Hunter: Primal and mobile strategy game Rumble City for iOS and Android devices.
It is the end of a busy development period then, and Avalanche's only announced project on the horizon is some additional development work for Square Enix on Final Fantasy 15.
It is this transition between projects which has caused the job cuts, an Avalanche spokesperson confirmed (thanks, Game Informer).
"The transition between major projects is always challenging, especially for independent developers," an Avalanche spokesperson told Eurogamer. "We have just completed one project and are currently wrapping up another.
"In starting up our new projects, we were not able to perfectly match the team sizes and skill sets of the previous ones, and we unfortunately had to let some talented developers go.
"12 developers were given notice in New York. There was a similar number of notices given this summer in Stockholm, but right now we are in the process of rehiring some of those who left.
"We expect to keep hiring in the new year. This unfortunate event does not affect any of our current projects, and we're taking measures to avoid situations like this in the future."