Following earlier reports that Factor 5 was going through financial woes, Edge learned that layoffs might have taken place.

Earlier this month, Sam Baker, an artist at Factor 5 posted in his blog that the company was going through serious financial complications and that trouble was afoot. Now Edge has a source claiming that 37 out of 75 employees were fired and that the last time the staff was payed was October 15th.

Speculated to be one of the main reasons behind this, or at least according to Baker, was the closing of producer Brash Entertainment, which Factor 5 was working with to develop a game based on a movie.

To that, Edge's source comments:

"The thing that bothers me the most about it all is they could have avoided all of this ages ago. It wasn't really the Brash deal going south that was the big problem, but it didn't help much either."

Factor 5 hasn't issued any statement on this issue, which is still classed as a rumour, despite chances of it being real are high. What this means to Factor 5's rumoured Wii project is obviously still unknown, but things don't look pretty.