IO Interactive, the studio known for the Hitman franchise and the upcoming 007 game, First Light, will close one of its development studios and lay off an unspecified number of staff. This decision follows Xbox's withdrawal of funding for a project the studio was working on.
The affected studio is located in Malmö, Sweden. While the exact number of employees impacted by the layoffs has not been disclosed, the closure represents a significant setback for the independent developer. IO Interactive has previously worked with Square Enix and Warner Bros. before becoming an independent studio in 2017.
IO Interactive is currently developing Project 007, a James Bond origin story, and is also continuing its work on the Hitman series. The studio has not yet provided an official statement regarding the closure or the layoffs, nor has it detailed the specific project for which Xbox withdrew funding.