38 Studios CM Charles Dane confirmed being laid off on Twitter: "Now on the market. I had an awesome run with 38 Studios, but this dream is now ending."
Word is that the company is also selling its subsidiary, Big Huge Games. Big Huge Games is the maker of Kingdoms of Amalur: Reckoning, 38 Studios' single-player prequel to its Copernicus MMO. This would not be the first time that Big Huge Games was sold by its parent company, as the studio experienced the same event back in 2009.
Oh his Facebook page, Curt Schilling stressed that Reckoning did quite well in sales. "I wanted to clear up some misinformation around 38 Studios' first product, Reckoning. Sales of Reckoning outperformed EA's expectations and sold more than 1.2 million units in the game's first 90 days in the market."
[Update]: Developer Ryan Shwayder has also confirmed the layoffs via his personal blog.