According to both Gamespot and Kotaku, Sony Online has laid off a large number of its workforce as well as closing down three of its studios located throughout the US.

Sony has stated that these job cuts are part of a 'strategic decision to reduce costs and streamline its global workforce.'

Along side these cuts, word comes down that The Agency is officially cancelled as the resources being put into this game will be shifted twoards two new MMOs based on Planetside and Everquest.

For more, head over to Gamespot for the full version of Sony's statement.