According to a report from Develop citing inside sources, Sony has terminated half of all employees at Studio Liverpool -- the team behind the WipEout franchise. In January 2009, Sony merged Studio Liverpool (formerly Psygnosis) with Evolution Studios and last week announced plans to restructure the new team. In its report of the restructuring, GamesIndustry.biz noted redundancies "may be necessary;" however, Sony has yet to confirm how many positions were affected by the decision.

Within the comments of GI's original article, a user registered as SCEE programmer Paul Ripley wrote "I would estimate about at least 50% of Studio Liverpool has [just] been culled (myself included). Hard to work out exact numbers at the moment." Develop's inside source relayed similar information, noting Sony's layoff plans for the studio were "looking heavy."

Joystiq has reached out to Sony for comment, but has yet to hear back as of this publishing. If you work/worked for Studio Liverpool and would like to speak to us on or off the record, we're all ears.

This article was originally published on Joystiq.