Bloomberg News is reporting that Take-Two is shutting down New York-based studio Playdots, the studio behind mobile hit Two Dots. 

In an advance notice filed with the New York Department of Labor, Take-Two indicated that 65 employees will be laid off as part of this action.

It appears the central motivation of this shutdown has to do with Take-Two's $12.7 billion acquisition of Zynga. Two Dots will be maintained by Zynga in the future, and Playdots' employees are being given chances to apply for jobs at the free-to-play developer.

Playdots also published Dots, Garden Tails, and Dots&Co. The status of those games is not known at this time. Take-Two first acquired Playdots in 2020 for $192 million, and Two Dots featured prominently in the publisher's quarterly financial reports. 

Game Developer has reached out to Take-Two and will update this story when the company responds.

Update: Take-Two spokesperson Alan Lewis confirmed the studios' shutdown to Game Developer, saying it was a "difficult decision" to shut down the New York-area company. "Everyone affected by this decision will have the opportunity to apply for other jobs at Zynga and those who do not find new roles will be eligible to receive severance," he explained.

It's apparently Take-Two management's goal to retain as many employees as possible at other ends of the company. "We believe this difficult decision will better align our resources with the needs of the business in today’s dynamic market. The operation of Playdots’ popular puzzle game, Two Dots, will continue at another Zynga studio and there will be no disruption of service," he added.