News sites are reporting from multiple sources that Activision is to close Bizarre Creations, with development staff only being told the news of the studio's closure in the last few hours.
Gaming website Giantbomb reported the closure, with confidential sources stating Bizarre Creations will now go through a "90-day consultation period, statutory redundancy".
VG247 has stated the rumour has been confirmed to it by two UK development sources, and that a press release is expected soon.
Bizarre Creations was founded in 1994, with Activision acquiring the PGR developer in 2007.
UPDATE: Activision has just released a statement regarding Bizarre Creations, claiming its "exploring [its] options regarding the future" of the UK firm.
"Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly. Although we made a substantial investment in creating a new IP, Blur, it did not find a commercial audience. Bizarre is a very talented team of developers, however, because of the broader economic factors impacting the market, we are exploring our options regarding the future of the studio, including a potential sale of the business."
At the time of Activision acquiring the developer, Bizarre posted on its website of the news that it "isn't a developer in financial trouble, and we're certainly not looking to be 'saved' by a bigger corporation. We're a dev looking to take our games to the next level, and make the absolute best products we can possibly make. Likewise, Activision is not in the business of 'buying out' struggling developers either...our future titles can be on whatever we please - we are a truly multiplatform studio now. Of course that doesn't mean that we'll be forced to make a port of every game to every console in existence... we simply have that option available to us."
The company went on to release four games under its new publisher. Two titles under the Geometry Wars franchise, as well as its fantasic racing title Blur and the recent James Bond 007: Blood Stone.