Atomic Games recently laid off dozens of workers, a move the Raleigh video game company blamed on its failure to land a new publisher willing to fund development of its controversial game about the Iraq war, “Six Days in Fallujah.”

CEO Peter Tamte wouldn’t disclose how many of the company’s 75 workers were laid off but said today that more than a dozen remain after the staff was “substantially reduced.”

He also disputed rumors that the company plans to shut down.

“The rumors are being spread by people who would like to see our studio close,” Tamte said. “There are no plans to shut down Atomic Games.”