X-Men Destiny and Too Human developer Silicon Knights may be in dire straits, with a report today stating the company is down from 97 employees to just 25. 1UP cites "two credible independent sources" as telling the news site of the massive layoffs over this past weekend.

The report seemingly flies in the face of a $3 million Canadian government grant given to Silicon Knights this past July, intended at the time to "create 80 new jobs and protect 97 existing positions." It was also supposed to make SK into a self-published dev house -- something that company head Denis Dyack has continually pushed for. As of this publishing, representatives from Silicon Knights had yet to respond to request for comment.

Update: The company has since confirmed layoffs, although the number is lower than originally reported in this piece.

This article was originally published on Joystiq.

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