35 staffers are rumoured to have been made redundant at Danish studio IO Interactive.

3D Realms boss George Broussard tweeted, "Layoffs at Io Interactive (Kane&Lynch/Hitman). As many as 35, and a project cancelled. Tis' the season."

Broussard has been right about these things before. Earlier this week he correctly forecast redundancies at EA.

IO Interactive had recently shipped Kane & Lynch 2: Dog Days for PlayStation 3 and Xbox 360. Despite some dismal reviews it still managed to top the UK charts on release.

Earlier this year, rumours began circulating that it had started working on Hitman 5 for a possible Winter 2011 release.

We've been in touch with owners Square Enix to find out more. We'll update soon.

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Fred Dutton

Fred Dutton

US News Editor

Fred Dutton is Eurogamer's US news editor, based in Washington DC.

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