Lionhead hit with layoffs after latest Fable release

No sooner does Fable: The Journey hit shelves to lackluster reviews than UK developer Lionhead Studios faces staff reductions. Despite the layoffs, Microsoft insists that another 100 people will be hired by June of next year.

"Following the completion of Fable: The Journey, Lionhead Studios has begun work on its next projects," read a statement from Microsoft to Develop. "As is common in the games industry, a smaller headcount is needed as projects kick-off and ramp up as full-production gets underway. At this time a small number of positions have been identified as at risk of redundancy and the affected employees were notified today."

Without giving an exact count, Microsoft spun the numbers to say "the reduction in staff would account for less than ten percent of the overall headcount at Lionhead by the end of 2012," Develop said. Microsoft is working with those affected to find them other positions at MS studios in the UK, if possible.