Update: Rockstar has since confirmed that restructuring efforts to “realign” resources are underway at its San Diego label. The following statement comes by way of studio manager Steve Martin, courtesy of Kotaku. While Rockstar did not specify an exact headcount, it did note that it is doing everything in its power to ensure that those affected are treated properly. Hit the jump for more.

As is typical with game development, our team sizes have always fluctuated over the course of the development cycle. As Rockstar San Diego transitions from the launch of Red Dead Redemption onto future projects, we are realigning our resources in order to continue to develop games as effectively as possible. We are ensuring that all employees who are affected by these changes are being treated with care. While we have no announcements to make regarding a sequel to Red Dead Redemption, the team here are hard at work on the development of downloadable content for the game.

Rockstar’s Western open-world epic Red Dead Redemption has been lauded as one of the most critically acclaimed titles of this generation. Deservingly so, sales figures have been equally as impressive, shifting an upwards of 1.5 million copies at retail in its first month. Things may not be as rosy as they seem, however.

Around 40 employees have been let go from the company’s San Diego branch, according to sources close to ShackNews.

This purported development comes following the recent announcement of significant plans for post-release content. Four bits of DLC are due out in a staggered fashion later this year, beginning in August with the “Legends and Killers Pack.”

Rockstar has yet to issue a comment on the report.

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