A small team of Valve employees operating out of a studio in San Francisco has been let go, but those affected say they will go independent and continue to work together.

Speaking with IGN, affected employee Tod Semple said, “We were working for Valve in a remote office in San Mateo. It turned out that there weren’t many benefits for either side in that arrangement.”

“Valve was super cool about it and is letting us continue to work on our game and is also giving us the office. So Jeff [Gates] and I are starting up a new company called Temple Gates Games.”

Semple and Gates joined Valve in November 2012, after their studio, then called Star Filled, was acquired by the Steam maker. At the time, Valve told Joystiq the transaction was "better categorised as Valve hiring two new employees instead of an acquisition of a company or opening of a Valve SF office."

The pair previously worked together on Plants vs. Zombies at PopCap.

“They’re independent now and still working on their game,” read a statement issued by Valve. “We wish them the best of luck.”