Annapurna Interactive's entire gaming staff has resigned from the company following a leadership dispute, according to a Bloomberg report.

The report, which IGN can confirm based on conversations with our own sources, states that Annapurna Interactive president Nathan Gary had recently been in negotiations with Annapurna founder and billionaire Megan Ellison to spin the gaming segment off as its own company. However, Ellison eventually pulled out of negotiations, at which point Gary resigned. Almost 30 other individuals, including division co-heads Deborah Mars and Nathan Vella, as well as the entire remaining staff of Annapurna Interactive, joined him.

“All 25 members of the Annapurna Interactive team collectively resigned,’’ Gary and the resigned staff said in a joint statement to Bloomberg. “This was one of the hardest decisions we have ever had to make and we did not take this action lightly.”

While negotiations were still ongoing, Annapurna Interactive re-hired former Epic Games executive Hector Sanchez as its president of interactive and new media, and Paul Doyle as its head of strategy. IGN understands that Sanchez was expected to head up Annapurna's gaming efforts in Gary's absence once his part of the company was spun-off. With Gary now having resigned, Sanchez has taken the lead.

As Bloomberg reports and IGN has also heard, Sanchez has spoken with partner developers this week to reassure them that Annapurna will continue its existing contracts and replace departed staff. A spokesperson for Annapurna confirmed to IGN that this plan would include both backfilling certain roles, while also partnering with third-parties to fill gaps as needed.

"Our top priority is continuing to support our developer and publishing partners during this transition,” Ellison told Bloomberg. “We’re committed to not only our existing slate of games but also expanding our presence in the interactive space as we continue to look for opportunities to take a more integrated approach to linear and interactive storytelling across film and TV, gaming, and theater."

Annapurna Interactive, a division of Annapurna Pictures, has become known for its publishing catalogue of boutique, critically-acclaimed indies. In recent years, the label has seen success and awards for games like Cocoon, Stray, Neon White, The Artful Escape, Sayonara Wild Hearts, and more. Just last month, Annapurna Pictures partnered with Alan Wake 2 developer Remedy Entertainment to fund its ongoing development efforts as well as make TV and film versions of its IP. However, Annapurna Interactive has also been the subject of an investigative report by People Make Games alleging it supported multiple company founders known to be creating toxic work environments at partner studios.

Rebekah Valentine is a senior reporter for IGN. Got a story tip? Send it to rvalentine@ign.com.

This story was amended post-publication to include statements from Annapurna Interactive and details from a company spokesperson.