They are seeing some layoffs and rumor is that the studio might close. The game didn't sell well and recently tried a new approach on PSN with splitting the multiplayer and campaign.
All those guys left Utah to start the Austin studio so if it's true then that sure sucks. Starhawk didn't exactly set the world on fire. Every problem I had with Warhawk (after 700 hours of play) seemed to make the transition to Starhawk and that's why I never picked it up. You would think Sony would keep them around to make something (anything) for the PS4 though.
dang mustve spent a good 100 hours on warhawk probably my favorite online game for the PS3 :[
EDIT: yup confirmed there not closing just laying people off and going to IOS development but still :[ http://www.ign.com/articles/2012/10/18/rumor-starhawk-developer-lightbox-interactive-hit-with-major-layoffs