The tough economic times are affecting not only major publishers, but also comparatively smaller development studios. Citing a “well placed source,” industry site Edge is reporting that Lair and Rogue Squadron II developer Factor 5 was hit with numerous layoffs today. A total of 37 employees were let go at the developer’s California, San Rafael-based studio on Friday.

According to the site’s source, employees at Factor 5 haven’t received a paycheck since mid-October. A couple weeks ago, artist Sam Baker decided to publicly post information on the troubles brewing at Factor 5 on his personal blog. Although said post was deleted, Factor 5 is now allegedly considering to sue Baker for “good measure.”

Factor 5 has yet to comment on the recent round of layoffs. Around 38 individuals are said to remain at the studio.

Source: Factor 5 Cuts 37 [Edge]

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