Gamasutra reports that the cuts are planned to “take effect early next year,” so they’ll only partly ruin Christmas, though it’s not yet known how many employees will be affected. Work on the game will continue.
Here’s the official Obsidian statement to the press, suggesting that My.com’s decision to move part of the game’s development to Russia is partially the cause:
“This week we let some of our developers on Armored Warfare know that they are being laid off early next year. The publisher of Armored Warfare decided to move a portion of the development of the product to their headquarters in Moscow. We remain extremely proud of Armored Warfare and all the work we have and will continue to put into it. None of the other products at Obsidian were affected by this. We wish our people the best, and are working with them to find homes with other developers.”