Gaming supplier NetEnt is set to cut its work force in its Malta-based live casino studio as a result of its impending merger with Evolution.

According to reports from the Times of Malta, NetEnt’s Malta employees were sent home on Tuesday morning and instructed to await further information.

A spokesman for Evolution reportedly told the Times of Malta that the Qormi studio will be permanently shut down, leaving all employees “at risk of redundancy.”

Although the company is yet to confirm how many employees would lose their jobs, a source has informed the news agency that it will be “a few hundred.”

Evolution made its initial offer to acquire NetEnt in June this year, for a total sum of SEK 19.6bn ($2.1bn). The offer valued each share in the Swedish slots and online casino supplier at SEK 79.93, and a premium of 43% over NetEnt’s closing price on the day of the offer.

After the UK Competition and Markets Authority approved the deal last month, the merger has the necessary approvals to proceed.

NetEnt currently employs around 1,000 staff across the world. Although some Malta employees will lose their jobs, the country’s Economy Ministry said it will attempt to identify alternative jobs for former employees.

Gambling Insider has contacted NetEnt for comment on the story.