There have been layoffs at Aliens: Colonial Marines co-developer TimeGate Studios, the developer has confirmed.

Timegate president Adel Chaveleh told Polygon that the studio was preparing for the next-generation transition and new business models.

"Today, we had to make the difficult decision to let go of some great game developers,” he said.

“This is never easy, and we're doing all we can to assist those developers affected.”

Polygon sources said that that about 25 people lost their jobs as a result of a collapsed publishing deal.

Timegate made headlines earlier this year when was alleged that the studio was responsible for the majority of the critically panned Colonial Marines.

Gearbox subsequently denied that the bulk of the game’s development was outsourced, with its president Randy Pitchford putting Timegate’s contribution at 50 per cent of the overall development.

Prior to its involvement with Colonial Marines, Timegate was best known for 2011 download-only FPS Section 8: Prejudice.