Mark Jacobs, VP over at Mythic in charge of the Warhammer Team confirmed that there would indeed be layoffs in the near future but assures us that the game will go on and development will continue.  You can read the post in his consolidated Layoff rumor thread over at the official Warhammer Online forums but for ease of reference I have copied it below:

"Folks,

Two things to keep in mind:

1) Our CEO JR has publicly stated the need to cut costs across all of EA. This statement is old news and applies all throughout EA.

2) As part of EA, all studios are expected to do their fair share to meet the expectations of our CEO.

It isn't any more complicated than that other than to say that we have a very large studio and pretty much every person there has been and will continue to work on WAR for quite a while (meaning we haven't started work on another game yet). When we launched, we had over 400+ people working on the game in one capacity or another so it's not like we had a small team at launch or even a small team now.

Oh, and the whole (OMG, we're losing 1/2 the developer (or even of the total team) thing) is total nonsense. This is one of the times I really, really wish I could comment more than I can but if you look at what JR has said in terms of *cost* cutting, that should give you a good idea about what is happening throughout EA.

Mark"