The story broke last night as a tweet from Mike Birkhead, a game designer working at Insomniac Studio stated "Layoffs at Superbot. When it rains, it pours".
This came as a huge surprise to everyone as PlayStation All-Stars Battle Royale sold roughly a half-million copies between the PlayStation 3 and the PlayStation Vita according to available sales data, a good performance for a console-exclusive released so closely to major properties such as Halo 4 and Call of Duty: Black Ops II.
However, the next DLC for PlayStation All-Stars Battle Royale is apparently still happening as planned. Sony released this statement:
“SCEA can confirm that SuperBot Entertainment did make a reduction in their workforce today. The studio and SCEA remain committed to supporting PlayStation All-Stars Battle Royale post launch, including developing the title’s forthcoming DLC releases in the coming months. The first character pack (including Kat from Gravity Rush and Emmett Graves from Starhawk) will be available for download on February 12 and will be free for the first two weeks. We’ll be sharing news of additional upcoming content soon.”