Rhode Island governor Lincoln Chafee confirms beleaguered Amalur developer makes cuts amid ongoing loan negotiations.

Rhode Island-based Kingdoms of Amalur and Project Copernicus developer 38 Studios has enacted a round of layoffs, according to an Associated Press report. Last evening, Ocean State governor Lincoln Chafee confirmed to the news service that the studio has made unspecified cuts to its workforce.

38 Studios has reduced its head count, according to governor Chafee.

According to the report, company founder Curt Schilling brushed past reporters on his way out of a Monday evening meeting, saying only that there is much "misinformation" swirling around. 38 Studios employed 379 full-time employees as of the end of March. It is unclear how many staffers were let go, and as of press time, 38 Studios had not responded to GameSpot's request for comment.

The layoffs follow news from last week that 38 Studios was having difficulty paying Rhode Island back on the 2010 $75 million loan issued to the company to entice it to relocate from Massachusetts to the Ocean State. The company reportedly skipped payroll to find the funds to make good on a $1.125 million payment. Asked about this, Chafee said there had been "a mix of who's made payroll," but did not say more, citing confidentiality agreements.

Despite the troubles at 38 Studios, the company's new massively multiplayer online game Project Copernicus appears to still be in the cards. Last week, Chafee revealed this title is due to ship during June 2013, with 38 Studios following that news by offering a first look at the game, embedded below.

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