Microsoft Lays Off Undisclosed Number of Lionhead Studios Employees

Microsoft has just laid off a number of employees at Lionhead Studios (Fable) following the completion of the studio's latest game, Fable: The Journey.

While Microsoft has not given an exact number as to how many people will lose their jobs, they did suggest that it will be less than 10 percent of the total workforce by the time the consultation process ends.

Here's what Microsoft had to say in its official statement (via GamesIndustry):

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's Fable: The Journey was released last week to mixed reaction and has failed to light up the retail charts to date. While Microsoft is not blaming the game for the layoffs, the publisher does note that with the project's completion, a smaller headcount "is needed." 

Following the completion of Fable: The Journey, Lionhead Studios has begun work on its next projects. As is common in the games industry, a smaller headcount is needed as projects kick-off and ramp up as full-production gets underway.

In the one bit of good news to come out of this, Microsoft is looking to help some of the unemployed shift into other "alternative opportunities" within the company.

We are working very closely with those people during this difficult time, to help them explore alternative opportunities within Microsoft – including new roles at Microsoft Studios which is growing in the UK and actively hiring across all locations, including Lionhead, Rare, Soho Productions and our recently announced new studio in London.

Whether you liked Fable: The Journey or not, it's never good news to hear losing their jobs. Needless to say, we hope that everyone affected lands on their feet straight away.