UK developer Eurocom announced that it would be reducing its staff from 150 developers to just 50, according to a statement from studio director Hugh Binns that was reported by IGN.
"Eurocom are undertaking a restructuring which I regret to say has meant we've made the majority of our workforce redundant today," he said. "This includes many very experienced, talented and highly skilled employees, and we'd like to thank them all for your hard work and efforts."
He also said that the developer fought to save jobs, but that the decline of demand for consoles games forced the decision to cut back.
"We've fought to try and save as many jobs as possible," He said. " But the steep decline in demand for console games, culminating in a number of console projects falling through in the last week, left us with no option."
The development studio recently released 007 Legends, a first person shooter video game featuring the character of British secret agent James Bond. The game was release in October for the PlayStation 3 and Xbox 360 and will also release later this year for the Nintendo Wii U and Windows PC.
The game celebrated the fiftieth anniversary of James Bond in films and features a mission from each era of Bond films in the single player campaign. But players only play as current James Bond actor Daniel Craig. The game also received a Skyfall mission DLC to coincide with the release of the new movie.
Since its release 007 Legends has received mostly negative reviews. On review aggregating website Metacritic, the PlayStation 3 version of the game has a 43-out-of-100 score based on 15 reviews and the Xbox 360 version has a 45-out-of-100 score based on 47 reviews.
Binn said that the developer would switch gears with its smaller staff and start developing games for mobile devices. He said, "Eurocom has retained a core staff of just under 50 employees and will be focusing mainly on mobile opportunities moving forward."