Kabam has laid off 12 percent of its workforce in pursuit of "greater financial flexibility."
The Disney Mirrorverse and Marvel Contest of Champions developer confirmed the news in a statement sent to Kotaku reporter Ethan Gach.
"In light of current economics and the industry's market realities, after reviewing our strategic priorities, Kabam has made the difficult decision to reduce its workforce by 12 percent," reads the statement.
"This restructuring provides greater financial flexibility to invest in new growth areas while also streamlining our existing development teams. We want to thank those leaving Kabam today for their contributions and we are supporting them through this challenging transition."
A series of Linkedin posts from those affected by the layoffs indicate the job cuts have impacted multiple departments and disciplines, including QA, design, animation, art, and live operations.
The game industry has been hit with wave after wave of layoffs in recent months, with major corporations like Meta, EA, Amazon, and Unity cutting thousands of jobs.
In the past four weeks alone, a huge number of studios including Relic Entertainment, Deck Nine Games, Brace Yourself Games, CD Projekt Red, Deviation Games, Ubisoft, Plaion, and Phoenix Labs have all made layoffs, highlighting the scale of the situation facing industry workers.