Although it's easy to jump to the conclusion that these are firings due to the poor sales of ID titles, (remember that although RAGE is the last title ID released they have proven very successful at monetizing their back catalog) if you look at the wording of the press release it states that the layoffs were part of a standard business practice to ensure that they have the right kind of workforce. This could as much mean that they getting rid of the dead weight (read: bad) developers as that they need less people because they can't afford to pay everyone. They then go on to say that they are looking for qualified developers which would make perfect sense if they were trying to replace poor performers people rather than downsize. Firing people and hiring others as a means of reducing payroll spending isn't unheard of (you can start the new guys off on a lower salary) but frequently it's far more likely that a company would instigate a hiring freeze at the same time that they proceed with 'rightsizing'
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