Toronto-based Bedlam Games, the development studio behind action role-playing title Dungeons & Dragons Daggerdale
, has "effectively shuttered", according to media reports.
A tweet from an anonymous whistleblower
suggested that the company had "laid off most of its staff and effectively shuttered last month."
Games site Joystiq has since received confirmation
from an anonymous source, who explained that around 90 percent of employees at the studio are on "temporary layoffs" with no severance pay.
The source also said that many of those affected have now gone on to find other jobs.
Greg Tchjen, previously a character artist at the studio, has also posted on the Polycount forums
noting the layoffs, and has altered his LinkedIn profile to show that he no longer works at Bedlam.
Gamasutra has contacted Tchjen to confirm the layoffs, and left multiple messages at Bedlam's offices that were not returned as of press time.
Bedlam Games only released one game overall, Dungeons & Dragons Daggerdale
for PC and Xbox Live Arcade in May of this year.