It appears that the rumors of layoffs at Stockholm-based developer GRIN are getting worse, with the company itself allegedly on the brink of collapse. Gamasutra has been informed by reliable sources that the studio has had another round of layoffs and that some employees have been told not to show up for work. Two of the company's studios have already shut down, with the main Stockholm office being the next domino.

Despite critical acclaim for Bionic Commando Rearmed, the studio saw sluggish sales and tepid reviews from big-budget titles like Terminator Salvation, Wanted: Weapons of Fate and -- the game that could really have given it a boost -- Bionic Commando. We'll update as we hear more.

This article was originally published on Joystiq.

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