Some thirty staff have been made redundant at Danish game studio IO Interactive, it is believed, with rumours that the action was triggered by the cancellation of a game deal with Microsoft.
The studio, known for its previous work on the Hitman series and Kane & Lynch, will not disclose how many staff are affected by the measures.
In a prepared statement, IO Interactive general manager Niels Jørgensen told Develop: “I can confirm that we have made some internal changes at IO Interactive which has regrettably resulted in the loss of some jobs.”
He added: “This is a natural part of any studio's existence when you ramp-up and ramp-down on projects to ensure you have the right level of resource and expertise within the studio. We genuinely wish those who have been affected by this, the best of luck for the future.”
Rumours of the scale of layoffs at IO began to circulate from a Computerworld report.
Jørgensen told Computerworld that the layoffs were due to project cycles.
"Like the movie business, we are very project oriented. And gaming companies adjusts up and down relative to where you are in the projects. It is quite common practice," he said.
IO was bought by Square Enix in 2004 for £23 million. It’s latest work, Kane & Lynch 2: Dog Days, jumped to the top of the charts.