Video game developer and publisher Activision has announced mass layoffs as they shut down Shaba Games studio. 61 employees will lose their jobs as a result. It has also halved the workforce at 7 studios.

“Activision continually evaluates the resources at our studio properties to ensure that they are properly matched to our product slate and overall strategic goals,” a statement released by the company said. “As part of this process, we recently made the difficult but necessary decision to close Shaba Studios. We are grateful for the studio’s contributions and wish this talented team success in their future endeavors.”

Shaba games is the studio behind the Tony Hawk series as well as the official Shrek game. 7 studios is working on Scratch: The Ultimate DJ, a rival to the game DJ Hero. Production on the game will most likely be delayed due to the layoffs.

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