IO Interactive confirmed that they have had to lay off several members of staff at their Demark headquarters.

The studio, which became part of as a result of its merger with Eidos, has let go 35 members of staff as part of a steamlining of operations.

IO general manager Niels Jorgensen told Danish site ComputerWorld (translated via IGN): "We are sorry to have to say goodbye to employees, but it is a natural process when working in a project organization."

Square Enix later released the following statement: "We believe that this decision will make IO continue to deliver great games and add momentum to our operations. We would like to thank all employees affected for their contribution and efforts and wish them well in their future careers."

Hopefully this won't have too much of an impact on the upcoming Kane and Lynch 2: Dog Days.

By Ewan Aiton