Computer games developer and publisher Rebellion, which owns legendary comic strip character Judge Dredd, is to axe ten staff at its Oxford headquarters.

The firm, started in a basement in 1993 by brothers Jason and Chris Kingsley, both of whom are Oxford University graduates, is also closing down its Derby office with the loss of another 40 jobs.

The company’s 40 employees at its Liverpool office are unaffected.

Managing director Jason Kingsley said; “We have laid off ten staff at our Osney Mead headquarters during a restructuring programme. There is a shift in needs in this business thanks to a growth in digital distribution.”

He added that the Derby office was closing as its lease had come to an end, but that the 40 staff at the company’s Liverpool office were unaffected.

The job cuts will leave Rebelion with about 260 employees, of whom about 200 work at the Oxford headquarters on the Osney Mead industrial estate.

The Kingsley brothers were the driving force behind the hugely successful Alien vs Predator game and the game versions of the Hollywood blockbusters The Mummy and Mission Impossible.

They own the rights to comic strip legend Judge Dredd trough their purchase in 2002 of the 2000 AD magazine, in which he had featured for more than a quarter of a century.

The company also has a book publishing business called Abaddon.

Mr Kingsley added: "We have weathered the economic downturn fairly well. To some extent our business is anti-cyclical in that people buy games when they have more time; for instance when they are unemployed.

He added: “Piracy is a huge problem for us. Also we are not competing on a level playing field since some governments, notably Canada, operate a tax system that is unfair to us.”

Rebellion Derby, formerly known as Core Design, was the original developer of Tomb Raider and, most recently, Rogue Warrior.