Death Jr. developer Backbone Entertainment is facing a round of layoffs, several sites have reported.
IGN reports that sources mention the possibility of a full studio shutdown, as well as that of a scaling back so the Backbone can "keep it going smaller."
Emeryville, California-based Backbone Entertainment is known for developing the Death Jr. games for PlayStation Portable and Nintendo DS. Recently the studio collaborated the Xbox Live Arcade version of Marvel Vs Capcom 2 as well as Harmonix' upcoming Dance Central 3. Backbone's current project was Midway Arcade Origins, a bundle of 30 classic Midway games including Gaunlet and Spy Hunter.
Polygon has reached out to Backbone as well as studio owner Foundation 9 Entertainment and Warner Bros., publisher for Midway Arcade Origins, for comment on the layoffs reports. We will update this story with more information as it is made available.