"There is currently no plan to reduce staff."
Ron Gilbert's updated his blog today with a very short update titled "Major Layoffs at LucasArts?" We have no clue, but honestly would anyone be surprised? After the previous big layoff, the "No bonuses!! >:(" announcement, and other rumors that have been flying around, we're left wondering if there's anyone left in the building.
More on this if it develops.
Update: Ron Gilbert has come up with more info, which he may be making up off the top of his head, but probably isn't. "All internal projects canceled except one ( don't remember the name, probably something to do with Star Wars ). 50 people let go. Or, maybe I'm just making all this up because I'm bored..."
Update: Gamespot now has the story as well.