Update: EA's just confirmed that the game's still in production.
VG247 has learnt from an EA employee that the majority of the LMNO team has been laid off at EALA.
LMNO was the codename for the "ultra-real" Spielberg game being worked on at the studio.
The fate of the game itself is unclear: we've been told that "almost everyone on the team has gone."
The title's has been in the works for several years, and has included concepts like motion-capturing tear movements in an effort to induce "emotion" in the player.
Today's talk emerged after EA said yesterday it was to lay off 6 percent of its overall workforce in the wake of Q2 losses.
More soon, hopefully.