Iowa-based Budcat Creations is being closed, Activision confirmed in a statement this afternoon. The company also revealed a "targeted reduction in jobs" at its Quality Assurance outfit in California. Budcat had been owned by Activision since 2008, when the developer was acquired for work on the Guitar Hero franchise. According to the publisher, "approximately 88 positions, or approximately 1 percent of our global workforce" have been affected by today's layoffs -- Budcat is thought to comprise roughly 60 people, putting the California redundancies in the range of 25–35 workers.

"We continue to streamline our music development resources to ensure that they are aligned against our slate and strategic goals," Activision explained. "Budcat has been a great partner to Activision and has created a lasting impact on the Guitar Hero franchise." Aside from Guitar Hero, the studio also worked on the Psychonauts PS2 port, as well as Medal of Honor: Vanguard for Wii.

Activision also notes it's "working to redirect those employees that are impacted to other parts of the company where possible, as well as offering them outplacement counseling services." Activision's full statement can be found after the break.

Activision statement:
"We continue to streamline our music development resources to ensure that they are aligned against our slate and strategic goals. As a result, we are implementing a targeted reduction in jobs in our Quality Assurance team in California and closing our Budcat studio in Iowa. Budcat has been a great partner to Activision and has created a lasting impact on the Guitar Hero franchise.

Approximately 88 positions, or approximately 1% of our global workforce, will be impacted by these reductions. We are working to redirect those employees that are impacted to other parts of the company where possible, as well as offering them outplacement counseling services."

This article was originally published on Joystiq.