According to the now-former associate art director of the studio, this is the third round of layoffs to have hit 1047 Games so far.
Co-founder and CEO Ian Proulx noted that support for Splitgate: Arena Reloaded will continue while a small team works on the new project.
1047 Games went on to thank its community for providing feedback that will shape future content, including modes like Arena Royale.
The overhaul, which features the return of Classic Arena, new weapons and maps, and more, faces an uphill battle to regain PC players.
1047 Games undoes the disastrous Splitgate 2 and signals a return to the arena with three new weapons, five new levels, and no factions.