Speaking to Develop, a spokesperson for IO Interactive confirmed that the company has canceled many of its current projects in order to focus its efforts on a new Hitman game, which is currently in pre-production.
Previously, the Square Enix-owned studio had developed games such as Mini Ninjas and Kane & Lynch. Its most recent release, Hitman: Absolution, launched last year for the Xbox 360, PlayStation 3, and PC platforms.
"We are making significant changes at IO Interactive as we align our business against a changing and challenging market," the statement reads.
"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 triple-A 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."