The company has closed two of its studios, one in Barcelona and the other in Gothenburg, with employees at its Stockholm studio being told not to turn up to work.
Costs climbed for GRIN when it needed to expand for the development of Bionic Commando, Wanted: Weapons of Fate and Terminator Salvation, all of which were released this year.
It wasn't looking good for GRIN after the development of Bionic Commando, which only sold 27,000 units in its first month in US stores. After this rumours hit that it had laid off 160 staff, although this wasn't confirmed.
GRIN are refusing to comment on these reports, but we will be looking to get a comment soon.