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Crytek closes five studios, leaving only Frankfurt and Kiev, following reports of pay issues.

Earlier this month, reports surfaced that suggested that Crytek’s Bulgarian studio hasn’t been paying its employees, in some instances for as long as six months. One source spoke with Let’s Play Video Games, saying that the reason for the delay was that the company hadn’t made a profit for quite some time, while others suggested that the company was in the process of being acquired by a “big name game company.” This followed a 2014 scandal in which Crytek employees refused to go to work because they hadn’t been paid in months.

While it still isn’t immediately clear why Crytek was allegedly failing to pay employees, the company has announced today that it will be closing five of its studios, in Hungary, China, Turkey, South Korea, and Bulgaria, in order to “concentrate on development in its Frankfurt and Kiev studios and continue to develop and work on premium IPs.” According to the announcement, “management has put plans into action to secure jobs and to ensure a smooth transition and stable future.”

“Undergoing such transitions is far from easy, and we’d like to sincerely thank each and every staff member – past and present – for their hard work and commitment to Crytek. These changes are part of the essential steps we are taking to ensure Crytek is a healthy and sustainable business moving forward that can continue to attract and nurture our industry’s top talent,” said Crytek Co-Founder and Managing Director Avni Yerli. “The reasons for this have been communicated internally along the way. Our focus now lies entirely on the core strengths that have always defined Crytek – world-class developers, state-of-the-art technology and innovative game development, and we believe that going through this challenging process will make us a more agile, viable, and attractive studio, primed for future success.”

In addition, the press release states that CryEngine will remain a “core pillar of Crytek’s overall strategy.”

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