It's been going around. Last week saw Sony dropping staff (again), though not from SOE. Now Turbine has announced an undisclosed number of staff cutbacks from their QA and Account Management divisions. Both the Massachusetts and California locations have been impacted by this. The company has specified that they are not looking to outsource these functions, merely reduce redundancies.
Turbine has stated that there are no plans to reduce efforts going forward on Lord of the Rings Online, Dungeons and Dragons Online or any other projects. This is especially important considering the recent launch of Mines of Moria, the first expansion to LotRO. In fact, they are currently hiring - just in other departments.
