The Movies Planet (thanks Brian) reports that Lionhead has internally revealed that it will be downsizing from three development teams to two, and that this means the upcoming Stunts and Effects expansion for the movies will be the end of development of additional content for the game. The news is not attributed, it simply starts with "We understand..." but verification can be found in a post by an admin on the Lionhead Studios Forums (thanks GameSpot). Here goes:

Over the last few months Lionhead has been working on plans for a new AAA world class game. As work on a number of its titles draws to a close, a pool of 100 super talented developers at Lionhead are available to create a new super team at Lionhead. This will be in addition to an existing team which is working on an amazing next generation title. This strategy was presented to Lionhead this morning in a company meeting but sadly it will mean some redundancies.

We are still continuing our support of the Movies, with new downloads on the Propshop, an add-on disk in summer, and the announcement of the winner of the Chrysler competition at E3.