Microsoft has confirmed that Fable: The Journey developer Lionhead Studios is undergoing layoffs.
MCVUK is reporting that a small number of staff is in danger of losing their jobs, with affected employees being made aware of their situations today.
Microsoft has told Develop that the layoffs represent less than 10 percent of Lionhead’s total staff, and that the company still expects to add over 100 employees across its various UK studios by the middle of next year.
Microsoft will also reportedly work with those affected employees to find new positions in those other studios, which include Rare, Soho Productions, and a new third studio in London that was announced just last month.
This past March, former Lionhead head Peter Molyneux left the studio to found his newest venture, 22 Cans.