This has been confirmed in a statement on social media, where CEO Denny Unger revealed that "due to industry forces beyond control" the developer is being forced to lay off around 70% of its staff, with the cuts happening as of tomorrow, January 7. 30% of the developers will remain employed to "continue the mission."
https://www.gamereactor.eu/pi---l-whip-developer-cloudhead-games-is-facing-major-layoffs-70-of-studio-laid-off-1656613/