Eurocom, the longstanding UK studio most recently responsible for the Activision title 007 Legends, has undergone a wide-ranging redundancy operation.
Studio director Hugh Binns told GamesIndustry International that just fifty staff would remain at the company.
"Eurocom are undertaking a restructuring which I regret to say has meant we've made the majority of our workforce redundant today," his statement read.
"This includes many very experienced, talented and highly skilled employees, and we'd like to thank them all for your hard work and efforts."
Binns suggested that it was the "steep decline in demand for console games" that had resulted in the studio losing out on a number of potential deals with publishers.
"Eurocom has retained a core staff of just under 50 employees and will be focusing mainly on mobile opportunities moving forward," he added.
Established in 1988, Derby, UK-based studio employs hundreds of staff. In the last few years it has focused mainly on Bond games, but it has also been credited on titles in the Street Fighter, Mortal Kombat, Dead Space and Duke Nukem franchises.