Looks like Relic de-diversified quickly.
Sega has apparently decided that CoH3 has too little players to support a company of Relic's size. Which obviously means they don't deem CoH3 very profitable in the short to mid term. This is a big hit to development, if not the last nail in the coffin.
While these news are kinda sad and definitely point to CoH3 not performing as expected, let's not pretend like this means that CoH3 is doomed for sure... not even close if you ask me.
We have absolutely no clue who got fired here, they could be (and probably are) people who -as shitty as it sounds- are not deemed essential anymore for the future development of the game.. such as Campaign mission designers or certain artists.... or people who are not even in the CoH3 team to begin with.
Even when putting the performance of CoH3 and this rough economic situation aside, Relic is not working on any projects right now apart from CoH3, at least not that we know of. They had over 300 employees prior to this move.... and I really doubt you need that big of a staff to support a post-launch game. So it's absolutely no surprise that they laid off employees, the total number is just a bit surprisingly high now. It's not unusual at all that the employee number of game development companies goes significantly up and down as time passes and games getting launched. No matter if it's Relic or Rockstar Games or any other studio
People really need to stop jumping to worst-case scenario conclusions all the time... the future of CoH3 might as well be very positive despite this news for all we know. Relic still has around 200 employees left