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Rumor: Red 5 Studios lays off one-third of its staff

Rubi Bayer, @@rubi_

Their official site reads "Red 5 Studios is seeking highly talented and driven programmers to help us build a AAA massively multiplayer title."

Well, maybe not. A report from Gamasutra gives the news that we never like to hear or report: Red 5 Studios -- founded by former World of Warcraft team members -- has laid off approximately 30 people. This report comes from a "reliable source" close to Red 5, and if the number is accurate, it's nearly a third of their 100-man team. (That figure from a December 2008 interview with CEO Michael Weingartner.)

Red 5 Studios has been around since 2005, and as a rule has stayed very quiet regarding their ambitions for their upcoming MMO. They secured funding in 2006 and made some staff changes in 2008, but it's been mostly silent on the Studio 5 front for the most part, until now.

Our best wishes go out to those affected by the layoff, and to all involved.

[Thanks to everyone who sent this in as a tip!]

Update: Red 5 has confirmed and clarified this rumor via a press release announcing the restructuring of the company: "As part of the restructuring, some team members chose to part ways while others were let go."

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