Telltale Games has confirmed layoffs at the studio.
The resurrected developer - behind the upcoming 'The Wolf Among Us 2' - has confirmed job losses after an ex-employee posted a message on social media last month claiming that "most of" his team had been let go.
Speculation about departures at Telltale started when cinematic artist Jonah Huang said that the studio "laid most of us off early September".
Huang also hinted that development on 'The Wolf Among Us 2' was troubled after the game was pushed back to 2024, although he is unable to comment further due to an NDA.
He said: "Our team was very small, and I was genuinely excited for the game. Telltale has yet to publicise any of what has happened."
The studio has now confirmed the job cuts after responding to a request from Eurogamer.
Telltale explained: "Due to current market conditions, we regrettably had to let some of our Telltale team go recently.
"We did not take this action lightly, and our commitment to storytelling and finding new ways to do so remains the same. We are grateful to everyone for their dedication along this journey, and we are working to support everyone impacted."
Telltale has not revealed the number of job losses but have reassured fans that development on upcoming games will continue as planned.
It confirmed: "All projects currently in development are still in production and we have no further updates at this time."