The game industry is such a fluid contracting environment. Its quite normal to fire people during downtime. Its because a studio builds up a large work force during production and when a game is done they don't need them anymore.
The thing with games development is; you have multiple stages, Pre-production, production, etc. During pre-production you don't need a large force of 3d artists. and since pre-productionc an take a long time (3 to 6 months) and if you only have one game at a time in a studio, then shit! You cant keep that force around for a long time since they are a dead-weight. It drains a studio of money, so what they do is fire people. Its the way its done! nature of the beast etc. Nowadays allot of the work force are made up of freelancers who sit on a project for a period of time and if the project is done they let them go.
anyway, on topic, OH SHIT
this game looks amazing!
check gametrailers for some exclusive footage. really impressive. It wasn't shown at any of the conferences and it looks beyond good! it actually looks next gen good, so I am expecting this to be the first next gen game.