Slant Six has announced that 26 employees at the studio have been given a choice between a temporary layoff and a severance package, as the developer seeks to cut costs while taking on additional projects.

The studio's latest release, Resident Evil: Operation Raccoon City, was considered a great success by publisher Capcom, but that has not been enough to tide the developer over between releases.

"Regretfully, we can confirm that there have been some temporary layoffs at our studio," a company spokesperson told Gamespot.

"We must stress that these are temporary layoffs, which means we are working very hard on new business prospects so we can reinstate every single person affected. As an independent and close-knit studio it is a very difficult but necessary business measure due to the current project cycle demands."

The majority of employees affected chose the temporary layoff, which allows for thirteen weeks of insurance coverage and extended benefits. If the employees are not re-hired at the end of the thirteen week period, the layoffs will become permanent.