Still not great news. Whatever projects they're working on, will be very small in scale, and/or leverage a ton of temp contract workers meaning quality is potentially very questionable.
Also IIRC most of the studio now is remote WFH; that may be good in terms of fitting around different lifestyles, but not having a main physical location to meet up at and work in, even for a bit, could become demoralizing to longer-term motivation and energy/effort among some of the team members.
I guess we'll see how everything pans out :/