Approximately 40 employees of High Moon Studios - the team responsible for Deadpool and several Transformers titles - have been laid off.
The Activision owned studio has recently completed work on superhero action game Deadpool, and will now be significantly scaled back.
In a statement sent to Kotaku, a spokesperson for Activision explained the lay-offs. "Activision Publishing consistently works to align its costs with its revenues - this is an ongoing process. With the completion of development on Deadpool, we are taking a reduction in staff at High Moon Studios to better align our development talent against our slate.
"Approximately" 40 High Moon Studios employees have been affected by the cuts, and have been offered "outplacement counseling services."
Deadpool will release for Xbox 360 and PS3 this Summer (Winter in Australia). A "fourth-wall-shattering" trailer was released last month.