Update: Lightbox Interactive President Dylan Jobe has told Joystiq his company will see "a sizable reduction in staff." Twenty-four staff members have been informed that Friday will be their final day at the Texas-based developer. Jobe adds that "all 24 of them are getting a severance package."

"Lay-offs always suck but they are an unfortunate reality of business sometimes. The best we can do is try and treat our people with respect during the shocking transition of a lay-off," he added,

Jobe says that after the cuts Lightbox will become a "much smaller studio" as they focus efforts on the development of the company's first game for iOS.

Original Story: There are rumblings that LightBox Interactive, the developer behind the PS3 exclusive Starhawk, will lay off most of its staff by Friday. 3D Realms founder (and previous layoff predictor) George Broussard tweets, "Good luck to my buddies at LightBox in Austin. Layoffs and rumors of near whole studio gone by Friday."

Yesterday LightBox Interactive president Dylan Jobe sent out an ominous tweet, reading, "And yeah, its time for another drink...." LightBox artist Jonathan Lindblom tweeted early this morning, "I feel like my brain has been taken out and passed around, I can't think straight, everything is muddled." Associate producer and community manager Pete MacKay tweeted his thoughts today as well: "And so another chapter closes on my life. Let's see where I go next! (taking suggestions)."

We've contacted LightBox Interactive for clarification.