Developer Flaming Fowl is laying off over 20 members of staff.
In a post on Steam, the company said that it was having to do this due to a lack of funding available in the industry at the moment. This news comes as it releases a demo for the upcoming card game Ironmarked.
Speaking to VGC, Flaming Fowl boss Craig Oman said that their 30-strong team is being reduced to just nine.
"Unfortunately, due to the current lack of funding in the games industry, we are putting production on hold and have had to downsize the studio, letting go of some amazing people," the studio wrote on Steam.
"Although this is a difficult and sad time for everyone involved, we are very proud of what we were creating and want to share that with all of you. We also hope that by releasing this demo, we can help those people leaving us to secure new roles elsewhere, by demonstrating their outstanding work on the project.
"Hopefully, with enough wishlists on Steam, we will be able to find funding in the future for Ironmarked, but until then we will be working on a smaller game that we can fully fund ourselves."