Cloud Chamber, the 2K-owned studio behind the next "BioShock" game, is undergoing a round of layoffs amid delays for the next game.

It's also installing former Gears of War head and Diablo franchise lead Rod Fergusson as head of BioShock and Cloud Chamber at 2K. Fergusson departed Blizzard earlier this month with no word on why he left, or who would replace him.

Rod Fergusson is returning to 2K Games and the BioShock franchise. The former Diablo head just left Blizzard earlier this month.