IO Interactive announced staffing cuts on June 30 after an external partner withdrew from its new IP Project Fantasy. The studio remains committed to releasing the game despite the change.
The Danish developer shared an internal message stating that the end of the partnership requires adapting to new conditions, including staffing decisions now underway. Employees affected will receive support during the transition.
Project Fantasy is an original fantasy world from the Hitman studio. IO Interactive said it loves the IP and will bring the universe to players in the future.
Microsoft confirmed its role as the partner in a statement to Bloomberg. The company said it is reviewing investments to focus on top priorities while maintaining overall spending on games at last year's levels.
The layoffs follow earlier Xbox studio reductions in 2025 that had already scaled back some online features of the project.
