Kotaku reports that it has a source claiming as much, and the IGDA chapter in Melbourne is "happy to help all affected" in any way it can. The Age's Screen Play Blog is hearing the same rumors.
Kotaku's source states Patrick Soderland of DICE, now a VP at EA's Games Label, decided the console game the team had been working on for the past few years wouldn't be profitable and pulled the plug on the project and studio.
EA Visceral Melbourne assisted on Dead Space, Godfather 2 and Dante's Inferno. We've contacted the publisher for comment.