Things sound pretty rough for Sony's SCE Studio Liverpool. Following the merging of Wipeout HD developer Studio Liverpool (formerly Psygnosis) with Evolution Studios, Sony Computer Entertainment announced that it is "restructuring" the studio. According to GamesIndustry.biz, it is currently unknown how many jobs will be affected. Evidently, Sony is looking to relocate staff rather than lay them off, though, as GI puts it, "some redundancies may be necessary."
In a statement, SCE said that "production on a number of projects within Studio Liverpool will cease immediately due to project prioritisation," and assured that "this decision will have no impact of the role that the North West Studio Group will play in the future of all PlayStation platforms." Except, of course, for the part of its role that included making those unspecified projects.