The redundancies are said to take place across the art and design departments as the company is redirecting its attention towards its publishing division and external development.
Team17 is reportedly laying off employees across several departments as it aims to restructure its business.
As reported by Eurogamer, employees were told about job cuts during all-hands meeting on March 17. Those who have been laid off claim that they already no longer have access to internal systems.
It is claimed that team members who have been dismissed include those in the art and design departments as the company redirects its attention towards its publishing division and external development of its intellectual property.
In a statement to Eurogamer, Team17's spokesperson downplayed the possibility of job cuts saying that those who have been let go can apply for other positions within the company.
"Team17 Games Label has initiated a re-alignment of elements within its studio operating business model in order to better meet the needs of our development partners and growth of our owned IP," they said.
"This could result in a small number of redundancies; however, we have a number of roles open across the Group and will be encouraging and supporting any colleagues that wish to apply."
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