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Red 5 Studios layoffs hit 10 percent of workforce ahead of Firefall launch

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Red 5 Studios laid off 10 percent of its staff in a restructuring effort ahead of the launch for its free-to-play, massively multiplayer shooter, Firefall, the company announced.

"As Firefall matures, we must transition our priorities and our development strategy to focus on streamlined operations and live product support," CEO and founder of Red 5 Studios, Mark Kern said in a statement.

According to Red 5 Studios, those affected by the reorganization include the "majority" of the studio's video internet entertainment channel, Stage 5 TV. The developer maintains that the development of Firefall, which entered open beta in July, is unaffected by the restructuring. The studio stated that the game's Open Beta Stage 2 is "well underway" and a major patch is slated for "later this month."

Red 5 Studios announced over the weekend that it will temporarily shut down Firefall's PvP, saying the PvP component suffered as focus was directed on the more popular PvE mode. No information was provided about when PvP will close or reopen.