Studio Liverpool, the development team behind the amazing WipEout HD, has been hit with layoffs and project cancellations in an effort of Sony restructuring. The news comes shortly after  Studio Liverpool recently merged with Motorstorm developers, Evolution Studios.

While the studio isn’t shutting down for good, the restructuring has forced Sony to layoff and shift members of the development teams along with terminating a number of projects…

According to GameIndustry.biz, Sony has issued the following statement:

“It has been decided that production on a number of projects within Studio Liverpool will cease immediately due to project prioritisation. Our North West Studio Group has been and will continue to be a vital cog in the WWS family, with a history of producing genre defining games such as MotorStorm, WipEout, Formula 1 and WRC and this decision will have no impact of the role that the North West Studio Group will play in the future of all PlayStation platforms.”

It’s sad to see such a talented group of developers being laid off but good to know that the studio still lives. All of us here at PS3 Attitude Towers wish those affected by this restructuring the best of luck wherever you may end up.