Update: Square Enix has provided a statement on the IO Interactive layoffs to Game Informer.

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. The studio will focus resolutely on the future vision for the Hitman franchise and is in pre-production on a new AAA Hitman project. However we have taken the difficult decision to cancel other studio projects and initiatives at IO and reduce the workforce in this studio, which will impact almost half of the employees currently at IO, as we make internal adjustments to face the challenges of today’s market.

For those affected, we are extremely grateful for the hard work which they have contributed, and where it’s possible and appropriate to relocate staff to open positions at other studios within the group, we will try to do so. We are also reaching out to other companies for outplacement opportunities. We sincerely wish them well in their future careers.

Meanwhile, if you are part of a company that is looking for additional development talent, please contact us directly at info@ioi.dk 

According to reports, Square Enix has taken another step to bring its financial house in order. Develop states that today sees layoffs of approximately half the staff at Hitman studio IO Interactive.

A statement from the publisher indicates that three-year veteran production director Hannes Seifert will take over the reigns. The developer is currently working exclusively on a new, AAA Hitman title, with other projects put aside.

In addition to Agent 47's adventures, IO Interactive was responsible for Freedom Fighters and the Kane and Lynch games. Hitman: Absolution, the latest title in the series, was one of three games from last year that failed to live up to the publisher's lofty sales expectations.

[Source: Develop]