Rovio has shut down Studio Lumi following its recent acquisition by Sega.
As PocketGamer.biz reports, 16 members of staff lost their jobs as a result and development has ended on an unannounced project.
Rovio confirmed that staff in key roles, such as SVP of brand strategy Ben Mattes, will retain their positions.
Studio Lumi was one of Rovio's two developers based in Montreal, and focused on making games for console and PC. Studio Six has not been affected by the decision.
"A decision like this is never taken lightly, but it is in line with following Rovio's strategy of strengthening our focus on our core strengths in mobile," the mobile firm said in a statement.
"With the recent acquisition by Sega, we can benefit from their decades of expertise outside of mobile to achieve the goal of bringing the Angry Birds brand also to players outside mobile."
It added: "We want to express our gratitude to the team for their work, dedication, and contributions throughout this journey."
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