Linden Lab, the company behind the popular sim game Second Life, has decided to reduce its workforce by 30 per cent.
The jobs cuts are a part of Linden Lab's "strategic restructuring".
The company said it was planning to merge its engineering and product divisions into a single unit, which would focus on moving the game out of the software-only platform and offering it on web browsers and social networking platforms.
Linden Labs CEO Mark Kingdon said: “We've emerged from a two-year investment period during which, among other things, we've spent a considerable amount of time improving reliability and the overall user experience.”
He went on to say: "Today's announcement about our reorganisations will help us make Second Life even simpler, more enjoyable, relevant and engaging for consumers starting with their first experience. It will also enable us to invest in bringing 3D to the Web and will strengthen our profitability."
Linden Lab currently employs around 350 people in offices around the world.