Sources close to the Rhode-Island developer say the entire team have been laid off.
Kotaku has reported Big Huge Games, a subsidiary of 38 Studios, has also shut shop. The Maryland developer played a key part in the creation of Kingdoms of Amalur.
Big Huge includes games such as Rise of Nations and Age of Empires 3: The Asian Dynasties in its résumé.
The last few weeks have sadly been a well-documented struggle for 38 Studios, with an unpaid government loan and an inability to pay staff wages marking this rather sad downfall.
No official word on the issue as of yet.