Rare are poised to cut an unconfirmed number of staff from their art department according to un-named sources at the Microsoft-owned studio.

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A source told Edge Online that all the staff in the art department in their Twycross headquarters have been asked to either accept voluntary redundancy or apply for 23 managerial positions in their new Birmingham office, which would mean at least 19 staff will lose their jobs.

According to current employment law companies don't have to enter a consultation period if the number of staff being laid off is less than 20. One source said: "...some negative feeling has led to additional artists taking the very generous voluntary redundancy packages... due to the consultation period coming in, it would seem to be more than 20."

The source added that given that the roles in Birmingham are management, all the actual artists would seem to be losing their jobs.

Microsoft said: I can confirm that a small number of employees in the art department of Studios have been informed that their roles are at risk of redundancy. While redundancies are never easy, these organizational changes are part of Rares ongoing and operational planning which typically coincides with the shipment of a title. We are working closely with the affected employees to support them through this transition and help them apply for other roles within Microsoft. Whilst were not discussing the exact numbers involved, I can assure you that its far fewer than youve indicated and represents a small percentage of the total Rare team."

At the same time has been speaking ofRare's bright future after the success of Sports. They stated to Eurogamer: "Rare is currently in a position of considerable strength as Kinect Sports have far exceeded global expectations and the title is No. 1 on the Kinect platform."

Original rumours of the redundancies surfaced on 4Chan with the poster claiming that Rare was "f**ked".

By Ewan Aiton