Red Dead Redemption is a commercial and critical success, moving more than 1.5 million copies in its first month while wrangling rock-solid reviews. Despite that, Rockstar has axed about 40 employees from the San Diego studio, according to sources close to the developer.

Kotaku has heard from multiple sources who say that a "significant" chunk of Rockstar San Diego was let go earlier today, just shy of two months after Red Dead Redemption's release on the Xbox 360 and PlayStation 3. Rockstar Games has not yet responded to requests for comment or clarification on the rumored layoffs.

Red Dead Redemption was the subject of multiple delays, a game originally planned for release in the fall of 2009.

Between the game's announcement and its completion, Rockstar San Diego employees alleged unfair working conditions at the studio, comparing the company's New York headquarters to the "Eye of Sauron," an accusation that the company said it was saddened (but appeared amused) by.

Rockstar San Diego, formerly Angel Studios, is also responsible for the developer's Midnight Club and Smuggler's Run series.

http://kotaku.com/5587413/rumor-rockstar-lays-off-40-from-red-dead-redemption-team

If rumors are true, then I guess RDR costs more than what people initially thought.

Near the end of a developmental cycle studios usually pick up a lot of temporary people to help finish up. After the project is finished they just let them go. Since they should have made a profit(Or at least supposedly) this is really all I can think that it is. Though 40 employees sounds kind of high....

Sources: http://www.industrygamers.com/news/red-dead-redemption-needs-to-sell-4-million-copies-to-break-even-says-analyst/Source 1

http://www.digitaltrends.com/gaming/red-dead-redemption-ships-5-million-copies/ Source 2

This is hugely typical of a company when they finish a game.  Some of the people they hired on as temps probably got picked up for full time employment too, but it's just not necessary to have that many people hired on all the time.

"Congratulations to our development staff for making Red Dead Redemption exceed commercial and critical expectations. You're fired."

Although the truth is in all likelihood closer to the scenario in which the development staff who were "fired" were actually hired on a contractual basis, which ended upon the completion of RDR. Pretty standard practice in the gaming industry.

Who's going to make RDR 2!?

a many here have said pretty standar industry practice

It's sad and I wish those people well but it's expected.  A 100 man team is huge, but a team nearly double that size?  I'm surprised they only let go of 40.

Hope them the best.

RDR is awesome!

Hmm I just heard from an industry insider who said the rumour is that it's mid-high level senior staff who were let go in order to cut costs. When I asked about the source of this rumour, they said it was from a survivor. Damn that's so nasty of Rockstar.