Although there are no official reports yet as to how many employees were affected by the incident, its parent company confirmed through a statement that team members who have worked for a long time with the developer have been laid off.
"SCEA (Sony Computer Entertainment of America) can confirm a reduction in workforce has taken place at Sucker Punch Productions," Sony said in a statement.
"Sucker Punch is appreciative of the tremendous work team members contributed to the 'Infamous' and 'Sly Cooper' series, and wishes them the best in their next endeavors," the company added.
Sucker Punch's first "Sly Cooper" game, "Sly Cooper and the Thievius Raccoonus," was first released in 2002. The game's two sequels respectively debuted in 2004 and 2005 for various PlayStation consoles.
Based on Sony' statement, those included in the layoff may have been with the company since early 2000, IGN speculated.
As for the developer's most famous game, "Infamous" was first released in 2009 for the PlayStation 3. The latest installment of the series, "Infamous Second Son," hit the market in March of this year.
Alexander Dracott, an environment artist for Sucker Punch and one of the team members for "Second Son" and its expansion pack "Infamous: First Light," posted on Twitter to announce his departure from the company, Hardcore Gamer reported.
"Sad to say but I am no longer with Sucker Punch," he tweeted. "Amazing studio with some amazing talent."
Ben Nicholas, a fellow artist from a different game developer, also took to Twitter to console the former employees of Sucker Punch.
"Heart goes out to all the folks laid off at Sucker Punch today," he wrote. "Hope everyone lands on their feet."
The production company was founded in 1997 and started working with Sony for its first "Sly Cooper" game. It was purchased by the electronics giant in 2011.
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