Daybreak Studios, developer behind the previously popular H1Z1, has confirmed that an undisclosed amount of staff have been let go from the company. The dev told PC Gamer in an e-mail, "We are realigning our workforce to better position our company for the future. Because of this, we have had to make an extremely difficult decision to part ways with some of our employees across various disciplines at the studio. We are doing everything we can to take care of each affected individual by providing them appropriate transition assistance."
This was followed up by an assurance that Daybreak will continue to support its currently available games and won't stop developing new IPs. While it isn't uncommon to see layoffs following the release of major triple A titles, H1Z1 had been a paid early-access title for years before eventually launching as a premium title. The shift to free-to-play came within a week of release, which certainly ticked off people who had been supporting the game for years.
While sad to see, I can't say I'm surprised. H1Z1 started a craze, but then failed to capitalize on the popularity it had. Players can only take so much before they move on, which probably hit Daybreak harder than most realize. Hopefully the people affected move on to something better.