High Voltage Software has confirmed reports that 25 employees were recently let go, just one month after the release of the studio’s Wii-exclusive fighting game, Tournament of Legends.

Speaking to IGN, a studio representative said:

“I can confirm that High Voltage Software has reduced some of our staffing based on our current production requirements and predictions of what is needed for the remainder of 2010.

“We are sad to have to say goodbye to these employees and friends, but these changes are necessary to bring our organization to a healthy operational size.”

No further reductions are expected in the immediate future.

The Chicago area studio would be better known for the first-person shooter The Conduit on Wii. While that title didn’t reach the critical and commercial success High Voltage and publisher SEGA may have hoped for, it must have performed well enough for work to begin on a sequel – Conduit 2 is currently in development at High Voltage.

Another game, an action title called The Grinder, is also in the works at the studio for PS3, Xbox 360 and Wii.

When asked how the recent studio departures would affect the currently in-development games, High Voltage vice president Eric Nofsinger said that the layoffs “will not affect our projects.”

Source: IGN and Gamespot