Breaking: Perpetual Entertainment Lays Off 40

We've received information from a credible source that Perpetual Entertainment has laid off 40 employees from their Gods and Heroes team earlier this morning.

San Francisco-based Perpetual is developing the upcoming Gods and Heroes and Star Trek Online MMOGs. Last year, the company laid off a number of contract workers, but our source tells us in this case the workers were internal to Perpetual.

Calls to Perpetual's offices weren't immediately returned.

Update: Chris McKibbin, President of Perpetual, spoke with Gamasutra about the layoffs. He also spoke with The Escapist's sister site WarCry.