Microsoft has ceased production on two projects at its Vancouver studio, resulting in redundancies made to several staff.
The publisher says only a "small" number of workers are affected.
In a statement issued to GameSpot, the company said it has ceased development on Microsoft Flight and Project Columbia.
The news comes in the wake of several recent downsizing operations across the Vancouver games development hub, with Capcom cutting staff at its Dead Rising studio, and Rockstar shipping its team out of the city .
News of the studio's restructuring emerged yesterday after an alleged inside source claimed: "The entire studio at Microsoft Games Studios on 840 Cambie has been laid off. 35 people in total."