Major Dundee games studio Outplay Entertainment is to shed up to 30 staff as it focuses on a smaller number of titles.
Outplay has been a huge success story in the city with revenues topping £20 million in 2017.
But chief executive Douglas Hare said the “sensible and necessary” decision had to be made after a number of its mobile games had not performed to expectations.
Staff have been informed that between 20 and 30 workers in Dundee will be made redundant in the company restructure, which will leave a workforce of about 120 people at the city’s Vision building in Greenmarket.
Outplay is known for its free-to-play mobile games like Crafty Candy, Angry Birds Pop and Alien Creeps.
Mr Hare, who established the company with his brother Richard, said: “If something doesn’t perform as we expect, we can’t ignore that.”