Numerous Sony Online Entertainment studios are closing according to George Broussard's twitter feed. The developer has been tweeting about the state of the company today.
He later confirmed the rumour, saying "SOE Seattle and other studios (Denver is rumored) will be closed tomorrow. Good luck to all impacted."
SOE Seattle were developing the ambitious upcoming shooter, The Agency for PC and PS3. They were also the team behind Magic The Gathering: Tactics. We've also heard rumours that half of the staff at SOE Austin have also been sacked. They're responsible for DC Universe Online.
George Broussard was one of the original creators of the Duke Nukem series.