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.
Will you support Eurogamer?
We want to make Eurogamer better, and that means better for our readers - not for algorithms. You can help! Become a supporter of Eurogamer and you can view the site completely ad-free, as well as gaining exclusive access to articles, podcasts and conversations that will bring you closer to the team, the stories, and the games we all love. Subscriptions start at £3.99 / $4.99 per month.