KingsIsle Entertainment confirms for Gamasutra the site's report that the Wizard101 developer has laid off staff. The original report said this was approximately half the studio, which would be around 80 jobs lost. Here's the official statement on the topic:

To verify, many talented employees were released as part of a reduction in force today at KingsIsle Entertainment, and we wish them the best. This coincides with a couple of unreleased mobile games being cancelled. The strategy is to refocus our efforts on our MMO games and polish our more promising mobile projects, many of which are still slated for a 2016 release. Fans of our MMOs should know that Pirate101 is soon to receive an update and will be going to Test Realm most likely next week. Wizard101 has new content updates in the works for both Summer and Fall 2016.