Well...even if not closed it has significantly tightened its belt...
There are definitely some people still working at Icarus (the person who responded to your article, the GM's still present in game and on the forums, and another who answers the phone if you call the office), so the article is clearly false. Additionally, the servers are still up and the Public Test Server is still getting updates.
The first article may be based in fact, but is probably more likely a bit overblown by a disgruntled ex-employee.
Perhaps, but getting rid of 77.3% of your workforce is a clear signal that something is very wrong.
I can't belive me eyes, I found the first story from a forum in Steam and after reading the first story in which "Tiggs" responded my brain started popping like popcorn and after a little research I found the goods....Tiggs was the Forum Manager for FlagShip Studios and Tiggs just so happened to be the one that kept us all happy in some ways as HellGate London was sunk but yet they kept the IP running for a few more months as Bill Roper and Gang cleaned out the cupboards and ran. So I checked out the forums for Fallen Earth and bam! Tiggs as I knew the employee was their along with the weird tag under the name (something about messing with Dragons and you taste good with ketchup). I was a Lifetime member with Flagship Studios and yes I'm flammed as they get but whats $149.00 membership get you these days anyways...but what got me started with this whole deal and thank you Escapist Magazine for posting your article early as there are way too many similarities and the Steam Forum is full of people with stories that brough back way too much pain. Icarus Studio's just so happened to come alive around or close to the last few days or so when they pulled the plug on Hellgate: London I applaud the reporter and the magazine for being ground breaking for if not for the first article my information and believe me thousands of others out there will atest to my story. In closing, I would reccommend Tiggs use another screen name at the next IP and for the life of me I can't figure out how someone gets hired on after being part of a major fraud of gamers since we could'nt update our subscriptions nor cancel and receive a refund, All i can say is people this looks like a snake and is starting to smell like one too. UPDATE: I tried with out luck to post a private comment to Tiggs on Fallen Earths website forums but Tiggs isnt receiving any pm's or post as mine was instantly removed.