Sega released a statement noting that it couldn't comment on the particulars of the situation as it's still under consultation with the studio, but reaffirming that the development would close later this year. Sega Studios Australia worked on titles such as Stormrise, Medieval 2: Total War, and London 2012.
This news is the latest in a series of unfortunate closures to hit the industry following the end of most companies' fiscal year. Here's to hoping that everyone affected lands on their feet.
Another Sega Studio Bites The Dust [Kotaku]