According to Danish site Computerworld, IO Interactive has laid off approximately 30 employees, though the developer wouldn't detail specific numbers. "Because we are a part of a listed company (as a company under the Square Enix Group, ed.), I can not enter the number or reasons about layoffs," IO Interactive general manager Niels Jørgensen said, confirming the lowered headcount. Though Jørgensen couldn't be specific, it is believed that the layoffs are a result of a canceled project with Microsoft.

"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 resources and expertise within the studio. We genuinely wish those who have been affected by this the best of luck for the future," Jørgensen further explained. According to reports, IO now comprises roughly 160 employees, down for the second time this year after layoffs hit back in March.

This article was originally published on Joystiq.