When speaking with GamesIndustry International, a Square Enix spokesperson confirmed the unfortunate layoffs of over half the staff at IO Interactive. IO Interactive developed Hitman: Absolution which released last November.
With the subsequent layoffs, all projects will see cancelation and the studio will instead develop another Hitman title. IO Interactive previously developed Freedom Fighters, the Kane and Lynch series and Mini Ninjas.
The spokesperson said, "We are making significant changes at IO Interactive as we align our business against a changing and challenging market. Hannes Seifert, formerly Production Director for 3 years at the studio, will take over the position of Studio Head at IO."
According to the spokesperson, IO will produce a "AAA" Hitman game.
As for those laid off, the company will try to find positions for them at other internal studios and even assist in contacting other developers for potential positions.
Source: GI.biz