According to gaming blog Kotaku's "sources close to the situation," Electronic Arts is shutting down developer Pandemic Studios. Though unconfirmed, Kotaku's sources say the announcement to Pandemic's employees was planned for some time this morning.
Pandemic brought us Full Spectrum Warrior, Star Wars: Battlefront and upcoming stealth-action game The Saboteur. It has been around since 1998, first as an independent studio and later as an arm of Electronic Arts. EA bought the company in 2007, and since then, Pandemic has mainly trafficked in poorly received or ill-fated projects, including a canceled Dark Knight game once in development at Pandemic, Brisbane, which has since been closed as well.
We've seen game The Saboteur, and it looks amazing, for the record. Speaking of, Kotaku reports that The Saboteur IP will be passed onto EA's Montreal studio, the office behind Army of 2.
Update: The layoffs have been confirmed, but that doesn't mean Pandemic, as a brand, is dead. In a memo quoted by Kotaku, Nick Earl, EA Games Label Senior Vice President, wrote "I want to make it clear that the Pandemic brand and franchises will live on... In the months ahead, we will announce plans for new games based on Pandemic franchises."