As usual, very unfortunate for those losing their jobs and hope they land on their feet.
On the other hand, this could be a blessing in disguise. Sony had way too many live-service/GaaS games planned IMO; cutting a few of those down to put that money towards more unique 1P games and/or cofunding & exclusivity of 3P games showing promise.
Although the downside to this is, we never got a chance to see the game. PixelOpus's game potentially being cancelled still hits harder if only because it definitely wasn't a FPS scifi/military-themed game, and there's nothing else coming seemingly like it besides DokeV (which we've gotten no update on since 2021).
But yeah, I think in light of this it's about time Sony start show us what some of their 1P are actually working on that hasn't been mentioned/revealed since.