The sudden decision for the studio to focus exclusively on stop-motion features means that 63 people have been laid off from the staff.
The company originally wanted to develop both stop-motion and computer-animated films, but will now only use computer animation on a limited basis - specifically to augment stop-motion.
The release of 63 staffers comes only a few months after a further 65 were let go when the CG-animated feature "Jack and Ben's Animated Adventure" was scrapped.
The man behind the company's Coraline,which earned $120.2 million at the worldwide box office. Henry Selick (pictured) will continue to develop new features for the studio as Laika's supervising director.
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