"The Boom Blox team was laid off today," now-former Electronic Arts Los Angeles senior software engineer Jeff Dixon wrote on LinkedIn, as noted by Blue's News. When reached for details, Dixon told the site that a total of fourteen employees had been cut.
The team had been working on an unannounced game--based off Dixon's LinkedIn, apparently "an original IP franchise"--centered around the Xbox 360's upcoming Project Natal add-on. That game may very well still be alive, as Electronic Arts told Kotaku "a small project has been moved from EA Los Angeles, to the EA Bright Light Studio."
The company described the transfer as a "routine event," explaining that "moving projects to leverage development strengths is common in global studio organizations" and vowing that "all eligible employees will receive severance and outplacement assistance."