ImageMicrosoft's Lionhead Studios, which most recently launched Fable: The Journey, has been hit with layoffs. Microsoft tells Develop that the downsizing represents less than 10 percent of Lionhead's head count and the publisher still intends to hire 100 people over the next year across its UK studios.

"Following the completion of Fable: The Journey, Lionhead Studios has begun work on its next projects," the statement to Develop notes. "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."

Fable: The Journey and Fable: Heroes have been the latest from the studio Peter Molyneux founded, who left in March to create new studio 22 Cans.

This article was originally published on Joystiq.