Microsoft Studios has suffered an unspecified number of layoffs today according to Microsoft and two of the employees who lost their jobs.
At Xbox, our goal is to constantly create new fun, social, and interactive entertainment experiences. As part of our commitment to this goal, we are always evaluating our development priorities, and there are times when decisions need to be made to realign plans and refocus our efforts. Microsoft Studios continues to grow as an overall organization as we focus and invest in key priority areas that will drive future profitable growth.
When later asked by GameInformer as to how many were laid off, Microsoft said, "While we do not discuss personnel decisions, the team affected was small relative to the overall size of Microsoft Studios."
We wish the best of luck to those laid off.