I always feel like these posts are bad, but never awful because we have no idea who and what positions were cut. It makes sense to downsize after a big project if you're not planning to make a sequel or quick followup.

Coulda just been some security guards and janitors =P

I would assume it's a lot of the Q&A team + some of the early stage team (artists, designers, etc.).

Only need a small team to continue on with DLC.

doesn't that happen often between games, in gaming companies, I mean do you really think ubisoft keep the 8000 people required to make assassin's creed when the game is done

Tim Schafer says it best:

http://www.gamasutra.com/view/news/179980/Tim_Schafer_Stop_laying_off_your_employees_once_a_game_is_done.php#.UQLxJ7_AeFA

Those people need jobs too

This is normal.

They were layed off, they are collecting unemployment.

This man. Such a cool guy. He seems to always have some wise words to share. The heads at Superbot probably never thought about it from this angle, sadly. 

Sony doesn't own Superbot, they didn't decide to lay people off. I'm guessing now that PASBR is over, they don't need to have such a large studio because they may not be working on a AAA title. Maybe they wanted to do a few smaller projects for Steam or PSN. If Sony hires them to do the sequel then they'll probably rehire people to work on the project.