"We are working closely with the affected employees during this difficult time, and helping them to explore opportunities," stated Microsoft. "We do not have an exact number to share but by the end of 2012 these reductions will account for less than 10% of the overall headcount at Lionhead."
Microsoft is keen to note that this is common practice and not indicative of any trouble, stating, "a smaller headcount is needed as projects kick-off and ramp up as full-production gets underway." The firm went on to say that it hopes to hire 100 new people for its internal studios by June 2013.
Common though it may be, it must be unpleasant to wrap up a project, only to be rewarded with termination. It's a shit business, indeed.