Microsoft has confirmed to Gamesindustry.biz, that lay-offs totalling less than 10 percent of the staff has been made upon completion of the recently launched Fable: The Journey.
"There is a thoughtful and fair consultation process for all employees to ensure they have the best possible chance of finding a role inside Microsoft Studios," Microsoft told GamesIndustry International in a statement.
"We are working closely with the affected employees during this difficult time, and helping them to explore opportunities. We do not have an exact number to share but by the end of 2012 these reductions will account for less than 10 per cent of the overall headcount at Lionhead."
Lionhead have lost some of its most prominent creatives in recent years, including founder Peter Molyneux, and with Fable: The Journey getting little in terms of critical acclaim or commercial success (All Formats 37th spot in its first week in the UK), one has to wonder what lies in the future for one of the most respected studios in the country.