Information about staff cuts at various Activision owned studios is making the rounds on the internet. According to Kotaku half the staff at Radical Entertainment (Prototype) in Vancouver (90 people) has been let go, while tweets seem to confirm lay offs at Guitar Hero developer Neversoft. Meanwhile, Gamasutra's sources tell them Santa Monica based Luxoflux (Kung Fu Panda, Transformers: Revenge of the Fallen) will be closed down entirely.
Activision has yet to confirm the specifics, but they did confirm they were making changes in order to realign their business to focus on the most profitable segments and increase their presence in the digital/online market.
(Pictured Prototype)