According to a source, Bizarre Creations will be going through a "90-day consultation period, statutory redundancy." The NeoGAF thread on this subject states that all 200 or so staff at the studio have been made redundant. Bizarre employees have known about today's closure for just about three hours.
A press release about this is said to be forthcoming.
UPDATE: Joystiq has a bit of clarification on the "90-day consultation, statutory redundancy" thing. Bizarre is sorta in the process of closing. This 90-day period gives notice to employees that a company is going to be shuttered or sold or downsized.
UPDATE 2: Shacknews and other websites have received the following boilerplate from Activision regarding this. Just to be extra clear, our sources believed Bizarre was toast at the time we reported this. It appears now, though, that the studio isn't closing immediately as was feared. It's possible that within this 90-day period someone can buy Bizarre and save the jobs that were supposedly made redundant.
Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly. Although we made a substantial investment in creating a new IP, Blur, it did not find a commercial audience. Bizarre is a very talented team of developers, however, because of the broader economic factors impacting the market, we are exploring our options regarding the future of the studio, including a potential sale of the business.
Big condolences to the 200 or so staff.