The Australian branch of EA's Visceral team could close today, according to a tip off from a source inside the studio.
According to Kotaku, the news was delivered to the staff by studio management.
The team had apparently been working on a new AAA title for consoles for three years, but new VP of the EA Games Label Patrick Soderland killed the project on the grounds it would not be a financial success for the company.
While EA has refused to comment on the rumours, the IGDA Melbourne confirmed the reports through its official Twitter account.
"Confirmation of EA closing Visceral has been received :( our best wishes to the 21 devs now out of a job #EAVisceral."
In the past Visceral Melbourne has worked on Dead Space, Godfather 2 and Dante's Inferno.