Playstation All-Stars Battle Royale was a bit of commercial bomb, even with reasonably favourable reviews, and it seems Sony are now making some cuts at the developer Superbot Entertainment.
Joystiq reported on an unknown number of layoffs, and Sony have since confirmed that reductions have been made. These layoffs won't affect the roll out of DLC, however, it is claimed in the same statement.
Rumours of a possible sequel of Playstation All-Stars Battle Royale have been making the rounds, but it now seems unlikely such a project has been greenlit.