Krome Studios, Australia’s largest developer, has made an undisclosed number of layoffs across its Brisbane, Adelaide and Melbourne locations.

CEO Robert Walsh cited declining game sales and the struggling economy as reasons for the cutbacks at the Star Wars: The Force Unleashed (Wii/PS2/PSP) and Viva Pinata: Party Animals (Xbox 360) developer, which was formed in 1999 and plays home to over 400 staff.

“Regrettably, an undisclosed number of employees across each of Krome’s three studio locations were informed they would be let go,” he said in a statement issued to GameSpot.

“With declining game sales, the industry is really feeling the effects of the struggling economy. In spite of industry-wide cutbacks and Krome’s need to reduce costs, we’ve worked really hard to minimise the impact on our staff. These cuts, while incredibly difficult as they affect the coworkers we consider friends, are necessary as we position Krome for the future. We’re also actively pursuing several business opportunities which, if secured, will enable Krome to reemploy some of the staff given notice.”