According to reports from Gamasutra and Eurogamer, Crysis developer Crytek is planning on laying off a number of employees at its Budapest studio. The team at Crytek Budapest was knee-deep in developing the Xbox 360-exclusive fantasy title Kingdoms (which both reports also mention will be Kinect-compatible) -- however, the project has now been placed in the charge of Crytek's Frankfurt studio. The reports claim that Crytek Budapest will now focus on tablet-based games, and will see its staff size cut from 80 down to 30-35 as a result.
Crytek managing director Avni Yerli did not directly confirm the layoffs, but did respond to the reports, saying, "We can confirm that our Budapest studio is getting a new direction and focus." The reports claim that whatever changes might go down will happen in the next few weeks, so we're sure to know more soon.