It's never good to hear about layoffs in the game industry and today a report on a Danish web site states that 35 members of Hitman and Kane and Lynch creators Io Interactive were let go by the company last Thursday. The report claims that prior to Thursday Io Interactive had 200 employees which would make the number of layoffs equal to 17.5 percent of the total number of team members.

The layoffs come as Io Interactive is in the middle of working on their next major project for their owner-publisher Square Enix with Kane and Lynch 2: Dog Days due for release in late August.

[Via Gamasutra]