The big picture: Razer's first two smartphones were generally well received by reviewers but selling mobile devices is no easy task. Recent job cuts suggest we may not see a third iteration of the gaming-focus handset.

Razer this past weekend revealed plans to shut down its Razer Game Store on February 28, just 10 months after launch. What we didn't know at the time was that this was part of a larger realignment plan that also impacts the company's mobile division.

Droid Life recently received a tip claiming Razer had laid off the majority of its mobile device and hardware engineering staff last Friday. Furthermore, the tipster said plans for a third generation Razer Phone were canned.

Reaching out for comment, the publication received confirmation from a Razer spokesperson that changes had been made to "realign our organization and strengthen our path to growth."

As a result, Razer shut down several projects and had to part ways with roughly 30 employees, or about two percent of its total workforce. Some employees are being moved to different projects, the spokesperson said.

Razer issued the following statement in response to Droid Life's original story, specifically with regard to its mobile division:

In our mobile division, there were some staff members who were let go, and others who were reassigned to other new projects. We see great opportunities in the mobile gaming space that we created with the Razer Phone and will continue to invest in this category through a combination of hardware and software initiatives. We are working on new exciting mobile projects and will share the news when we are ready. The Razer Phone 2 will continue to be on sale and we are committed to supporting it with the latest updates and features.

Razer's statement seems to be sending some mixed signals. On one hand, they confirmed that some mobile staff members were let go and others were reassigned to different projects while at the same time committing to investing in the category through hardware and software initiatives.

Lead image via Framesira via Shutterstock