After several weeks of speculation about the company’s future, Crytek breaks its silence and announces the closure of several studios operating underneath its banner.

In recent weeks, there have been several reports that various studios owned by Crytek were behind on payments to staff, but until now the company has been reticent to make an official statement regarding the situation. Now, Crytek has spoken out — and the news isn’t good for the developers affected.

Crytek is planning to refocus on its “core competencies,” according to a report by Eurogamer. This refers to a prioritization of development at its Frankfurt and Kiev bases of operation, and a further emphasis on CryEngine as a development tool that can be licensed out to other companies.

Things don’t look so rosy for those outside of the Frankfurt and Kiev studios. “All other development studios will not remain within Crytek and management has put plans into action to secure jobs and to ensure a smooth transition and stable future,” read the press release published by the company earlier today.

This would seem to indicate that the Crytek studios in Budapest, Sofia, Seoul, Shanghai, and Istanbul are set to be shut down. However, given the wording of the press release, it’s possible that one or more of these studios could become an independent developer in their own right, or even end up being acquired by another company.

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However, it seems clear that Crytek’s decision to restructure its business interests will result in layoffs. One silver lining is that the company has apparently been able to pay salaries up to October, with November payment set to arrive this week — the company had been experiencing longstanding financial difficulties that has disrupted payment since May 2016.

“Undergoing such transitions is far from easy, and we’d like to sincerely thank each and every staff member – past and present – for their hard work and commitment to Crytek,” read a statement from company co-founder Avni Yerli. “These changes are part of the essential steps we are taking to ensure Crytek is a healthy and sustainable business moving forward that can continue to attract and nurture our industry’s top talent.”

It seems that Crytek will focus on a smaller range of bigger releases, rather than attempt to sustain the quantity of smaller projects that have been in development in recent years. However, this may prove to be difficult in the wake of this restructuring, as many of the company’s subsidiary studios were typically called into action to help facilitate the development of its more major titles.

tags: Crytek

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