Reports had previously indicated that the TimeSplitters studio was facing closure prior to Christmas amidst turmoil at parent company Embracer Group.
New World Interactive is the latest studio to be affected by the restructuring at Embracer Group.
The layoffs come on the back of "the lack of approval and therefore financing" for Project Black, an in-development unannounced project.
Plaion exec Lars Jannsen has reportedly said in an internal email that Free Radical Design faces "potential closure" on December 11.
"It's been an agonizing process to see the sort of headcount [reduction], but we know it's a necessary thing for us to hit our new and needed goals," says interim chief strategy officer Phil Rogers.
Journalist Jason Schreier has said that contrary to recent reports, the remake is still being worked on by some people at Saber.
Journalist Jeff Grubb has claimed that the Knights of the Old Republic remake is not in development at any Embracer studio.
However, the developer says it's confident that sales will pick up again as the game gets more updates as part of its live service plans.
The company has been shuttering studios, cancelling projects, and laying off employees in order to save costs.
The company says this is "due to a softer launch where an unforeseen error relating to external matchmaking software impacted the experience for gamers."
A new report has claimed that Embracer Group is on the verge of shutting down the studio a little over two years after it was re-established.
Investment bank Drake Star partner Michael Metzger believes Sony and Take-Two Interactive will be actively looking to make acquisitions in the coming months.
The remake has reportedly faced development issues, with Saber Interactive allegedly taking over from Aspyr Media last year.
The company also says it's open to divesting some of its studios, amidst reports of a potential Gearbox Entertainment sale.
The Tomb Raider developer confirms it has laid off ten employees as part of recent restructuring efforts by parent company Embracer Group.
With Gearbox put up for sale by parent company Embracer Group, the studio says going independent is another option currently under consideration.
Embracer Group acquired the Borderlands developer in 2021, in a deal worth $1.4 billion.
With Volition having been closed with immediate effect, we take a look back at the history behind the studio and what eventually led to its unfortunate demise.
Less than a year on from being shifted from Deep Silver's label to Gearbox, the studio has now been shuttered effective immediately.
The Embracer Group has revealed that it has plans to exploit the fact that it owns The Lord of the Rings and The Hobbit IPs.
