UPDATE: Silicon Knights has since confirmed that they have laid off 43 staff members – just under half of their total workforce. This comes in the wake of failed publishing negotiations with an unnamed publisher for the development studio’s next project. The failed publishing agreement was not with Activision, who published Silicon Knights previous title, X-Men: Destiny. Silicon Knights says that they are still continuing with the development of the new game, but are in new negotiations to find a suitable publisher.

ORIGINAL: According to a report on 1Up, which quotes two reliable and separate sources, the developer behind Too Human and the more recent X-Men: Destiny has been hit with massive layoffs. According to one of 1Up’s sources: “Silicon Knights has had massive layoffs. They are now down to a core staff of 25 people”. That’s 25 people out of a team of 97.

The Canadian developer has yet to deny or confirm whether the layoffs have actually happened, but it’s interesting to note that Silicon Knights has received more than CDN $8 million in grants from various sources since 2008.

Many will point towards the two most recent lacklustre entries from the developer as the reason for the rumoured downsizing. Too Human (published by Microsoft Game Studios back in 2008) didn’t exactly smash sales records. Activision picked up the publishing rights to the more recent X-Men: Destiny and, well, that hasn’t done too well either. The latter sits with a combined Metacritic average of 46% across the three major console platforms.

Source: 1Up