Massive layoffs hit Too Human and X-Men: Destiny developer Silicon Knights last week, cutting the Canadian developer nearly in half Activision pulled the plug on a project the team was working on, the company said.
"Last week Silicon Knights experienced layoffs due to extended contract negotiations falling through with a potential partner," the developer told Kotaku. "We are currently in discussions with other potential partners. The recent Ontario government funding is tied to future performance targets, spread out over the next 5 years, which we will meet."
While Silicon Knights declined to give Kotaku specific numbers, they told The Financial Post that they had laid off 45 employees, or just under half of its work force.
Silicon Knights has received about $US8 million in government funding, according to the FT story.
The developer told Kotaku that they are already refocusing their energy on returning to their roots.
"The company is currently refocusing and returning to its roots, working on one of its most requested titles for the next generation," the spokesperson said.