An anonymous tip to PRNewser, confirmed by a source wishing not to be named, told us that Taylor PR laid off a significant percentage of staff and lost work with the XBox gaming console.

The midsize agency ranks 10th on the O'Dwyer's list of of independent firms with billings of $20 million and a staff of 105. The sports, lifestyle and entertainment firm does work for brands like Kleenex, MasterCard, Jose Cuervo, Guinness, and BRP (those three-wheeled cycle-car things).

I spoke to Taylor COO Bryan Harris who confirmed the layoffs, though said they were in Q4 2008, and that the tipster's 20% number was inaccurate. According to Harris, the firm has taken steps to stabilize and revenue is actually up in Q1 2009 over Q4 of 2008.

Harris also said the firm completed three XBox projects for Microsoft in Q1.