Multiple employees of Skullgirls and Indivisible studio Lab Zero resigned recently (opens in new tab), after allegations about studio head Mike Zaimont's history of sexual comments and inappropriate behavior, directed both at staff and members of the fighting game community, came to light. As of last week, Zaimont has laid off all remaining staff, as animator Jonathan Kim explained on Twitter (opens in new tab), noting that Zaimont "hasn't agreed to a severance for them yet."
Kotaku (opens in new tab) reports that Lab Zero's board asked Zaimont to stand down when the allegations became public, but a deal couldn't be reached and instead Zaimont dissolved the board and took over Lab Zero completely. It was this that triggered the initial exodus of developers. Apparently only 11 remained for Zaimont to lay off.
Regarding the future of Skullgirls, Autumn Games, who own the Skullgirls IP, and Hidden Variable, who created the mobile version, released a joint statement last month saying that, "We plan to work with the many talented individuals who are leaving Lab Zero to build new Skullgirls content moving forward".
An official statement from Hidden Variable and Autumn regarding Lab Zero Games and the future of Skullgirls. pic.twitter.com/4qeoN9fgRjAugust 25, 2020