Lair developer Factor 5 was hit with layoffs today, cutting its staff in half after letting go a reported thirty-seven employees. Edge cites a "well placed source" who confirms the developer's recently publicized money woes.

According to Edge's anonymous source, the alleged details of Factor 5's funding problems, as announced on an employee's personal blog, were spot on. Employees haven't had a paycheck since mid-October, the source said, adding that the animator who dished the dire details on Factor 5 has since left the company — and may even facing legal ramifications for making it's problems public.

Factor 5 was said to be seriously financially impacted by the folding of Brash Entertainment, which itself laid off staff in November.

Source: Factor 5 Cuts 37 [Edge]

Send an email to Michael McWhertor, the author of this post, at mike@kotaku.com.