Leading Austrian game developer Sproing Interactive, creator of free-to-play strategy titles such as the Bandai Namco published Asterix & Friends, has laid off two of its five development teams in the face of rising debt.
The studio made the cuts after filing for "Sanierung," a unique form of insolvency that serves as a lifeline by giving companies time to rehabilitate and restructure.
It's unclear exactly how many staff members have been let go, although prior to the layoffs the studio claimed to have "almost 100 employees."
Sproing CEO Harald Riegler confirmed the news to GamesIndustry.biz, explaining the studio reduced its headcount in an attempt to balance the books -- though he stopped short of revealing how much money the developer owes.
Riegler claims that those affected by the layoffs will receive any outstanding payments owed, and says the studio's immediate future has also been secured.
"This step is very sad, and we're terrible sorry for those affected, but it doesn't jeopardize the studio per se," explained the Sproing boss.
"We sincerely wish those affected the best of luck and are actively helping them to secure more work. At Sproing, we are now focusing on the future as a smaller, more focused team." The CEO claims all remaining staff are now working on "profitable projects."