Zynga has announced the closure of its subsidiary Echtra Games.

In a statement to IGN, the firm said the decision to shut down the Torchlight 3 developer was “part of a strategic alignment” of its “resources and priorities”.

“Zynga has made the difficult decision to cease operations at its Echtra Studio, ending the development on future titles and reducing roles,” it said.

“This decision is part of a strategic realignment of the company’s resources and priorities. We will work closely with impacted employees so they are treated with utmost respect and consideration as we navigate this difficult process.”

San Francisco-based Echtra Games was founded in 2016 by Max Schaefer. He also co-founded Blizzard North and co-created Diablo.

Following the closure of Runic Games in 2017, the Torchlight franchise was reignited by Echtra Games in 2018 with the online title Torchlight Frontiers.

Echtra Games was acquired by Zynga in 2021 for an undisclosed sum. Zynga was subsequently acquired by Take-Two Interactive in 2022.

Earlier this year, Zynga announced it was shuttering Star Wars: Hunters, developed by the firm and its subsidiary NaturalMotion.

Last October, NaturalMotion was reported to have laid off an unknown number of employees across its studios in the UK and the US.

In a statement to GamesIndustry.biz, the developer said it had made “the difficult decision to review [its] UK and US operations, which may impact a number of roles”.

“We believe these changes will help ensure that the studio is sustainable for the long term and aligned with our future development needs,” it explained.

Take-Two announced it was cutting 5% of its workers by the end of 2024, which was estimated to be around 580 people.