IO Interactive Lays Off 30; Rumored to be Due to Canceled Microsoft Project

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Additional layoffs are being reported from Kane & Lynch and Hitman developer IO Interactive to the tune of 30 employees, reports Computerworld (via IGN).

"I can confirm that we have made some internal changes at IO Interactive which has regrettably resulted in the loss of some jobs," a Square Enix representative told Shacknews. "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."

Computerworld is reporting that the layoffs are the result of a canceled project with Microsoft. A new Hitman game was confirmed to be in development along with the then unreleased Kane & Lynch 2 back in May 2009.

The Square Enix-owned studio let go around 35 employees at the end of March, prior to Kane & Lynch 2's August release.

Square Enix did not respond to the report of a project cancellation or the status of the Hitman game. We'll update you if we hear any additional details.

From The Chatty

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    November 1, 2010 3:45 PM

    I hope the people behind Hitman were working on that and not Kane and Lynch. What I mean is I hope that's where all IO's talent was while Kane and Lynch 1 and 2 were being made. I know that's not the case, but I can dream.

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      November 1, 2010 4:20 PM

      all io's hitman talent is at retomoto. they left in 2008

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        November 2, 2010 9:07 AM

        Is that really true? Any source? I'd be sad if they dont have any Hitman games in their pipeline that is not going to have all the original talents working on it :(