Mario Wynands, Managing Director of Wellington-based Videogame Developer Sidhe, has revealed to NZGamer.com that his team is currently undergoing a restructuring process.
Exactly what that will mean in terms of headcount has yet to be decided, however Mario confirmed that "yes, there will be layoffs". Determining the number of people affected is part of the on-going process, however that number is likely to be in double digits (the team currently consists of 88 people in various roles).
The process of advising the people who may be impacted by the restructuring has already begun, lending credence to suggestions by inside sources that it will be over quickly.
The change in team make up is part of a continued process in which the studio is switching focus from console retail titles to smaller, digitally-distributed content. A big part of this transition has been their mobile label, Pik-Pok, which has gone from strength to strength since the debut of their first title - Fame - back in 2009.
That doesn't mean the company will only be making mobile games though, as Mario confirmed that they currently have no less than seven titles in the works, across six different platforms - including a PlayStation Vita version of the recently released Rugby Challenge.
We don't know which teams within the company are likely to face redundancies, however Mario did confirm that the Quality Assurance (QA) team are not part of the process. "It's really about scaling down the factory part of the studio", Mario explained, as Sidhe looks to re-imagine itself as "creating smaller, higher quality games, and being able to sell and support those to the consumer".
How this will shake out into the number of people who face a Christmas job hunt is yet to be revealed.
We'll bring you more on this story as it develops.