2K has confirmed a report from a Kotaku source that it will be shutting down its Australian studio in Canberra. All employees have been laid off, though the publisher has stated it is looking to help those affected find additional opportunities.
2K Australia was one of the final AAA developer based in Australia. Originally a part of Irrational Games as Irrational Canberra, it was spun off into 2K Australia after 2K purchased Irrational in 2006. It worked on all three BioShock titles and most recently released Borderlands: The Pre-Sequel! to critical and commercial success.
Unfortunately, it appears that the costs of operating out of Australia was a significant factor in the studio's closure. 2K offered the following statement to help clarify the situation:
We can confirm we have taken steps to begin the studio closure process for 2K Australia in order to better manage ongoing development costs while improving the working proximity of our creative teams. We are very grateful for the team’s valuable contributions to numerous 2K projects, and are working with affected staff to explore reassignment opportunities where possible.
Our hearts and prayers go out to those who've lost their jobs.