Another big video game developer is seeing massive layoffs. In a recent report by Kotaku, it was alleged that The Last of Us developer Naughty Dog announced a number of layoffs last week. Sources alleged that the layoffs were announced at the office in Santa Monica, California.

Last Of Us Studio Naughty Dog Is Cutting Developers https://t.co/C39QbuZcU3 pic.twitter.com/QCKTqx4xK9

— Kotaku (@Kotaku) October 3, 2023

Sources told Kotaku that at least 25 workers are set to be let go. While the majority of those workers laid off are alleged to be from Quality Assurance, other departments affected ranged from their art to production. Additionally, sources said that those workers weren’t offered a severance and were being pressured to keep quiet. Kotaku noted that Naughty Dog’s full-time employees likely won’t be affected by the layoffs.

Naughty Dog has seen other troubling reports in 2023. In the past few months the studio faced restructuring within its leadership following its co-president Evan Wells announcing his retirement after a long career with Naughty Dog.

Additionally, past reports showed that Naughty Dog was having issues with the development of its The Last Of Us multiplayer shooter spin-off to the point that Sony diverted its resources away from the project.

Now, sources told Kotaku that projections on the game have worsened and that it was “basically on ice at this point.”

The negative effects of the pandemic seem like they’re hardly slowing down as the gaming industry sees a large uptick in recent restructuring and layoffs. Companies like Electronic Arts, Ubisoft, and Epic Games have all announced a heavy amount of restructuring in the past months.

Currently, Naughty Dog and Sony haven’t responded to the reports.