Sources are telling us that developer IO Interactive is undergoing a restructuring that has resulted in the loss of at least 35 jobs so far from the studio that employs about 200. Parent Square Enix Europe is spinning this as a series of organizational changes that are tied to the ramping up and ramping down of projects.

IO is best known as the developer of both the Kane & Lynch and Hitman franchises. Currently, the studio is in all hands on deck mode for the final push to finish Kane & Lynch 2: Dog Days, which is apparently still on schedule for release on August 24th. Our sources whisper to us that the decision will not cause this release date to slip and the title is still on schedule. With Kane & Lynch 2 so close to release our sources suggest that some of the resources were just no longer needed.