Aussie developer Krome Studios (Game Room, Blade Kitten, Star Wars: Republic Heroes) has allegedly just completed another round of layoffs, with the number of employees let go this time ranging from 30 to 50. Develop notes that Krome had somewhere around 400 employees before the first known round of layoffs last year. AusGamers reports a possible financial reason for letting people go: Krome allegedly did not receive the license to develop the The Force Unleashed 2 for Wii "as a result of poor review scores for other Krome titles." IGN adds perspective about the impact of the layoffs, estimating that Krome "accounts for some 25 percent of games development in Australia."
Krome CEO Robert Walsh made it very clear last year that developers' budgets "have probably doubled or tripled during the console transition," which likely doesn't make it easy to run a studio -- especially such a large one. We've contacted Krome for comment and will update if we receive a response.
Update: Krome has responded to Joystiq saying, "We regret to confirm an unspecified number of positions have been eliminated today at Krome. The industry worldwide is facing new challenges and Krome is not immune to the effects of this. Beyond that, we cannot make a comment."
Source -- Rumour: Aussie developer Krome hit with layoffs [IGN]
Source -- Krome loses more work and more employees [AusGamers]