En Masse Entertainment begins layoffs (TERA free to play inevitable??)

TERA's North American Publisher EME, has begun laying off their employees, this was seen via employee Evan Berman's (Scapes) Twitter Page.

Chris Lee has confirmed that Lay offs have indeed begun and had this to say (Credits Via Massively for the interview)

Today, we had to let go of some of the great talent at En Masse Entertainment. While a tough decision, it was necessary as we prepare for the next chapter of our business. TERA has been a great launch for us, and we are committed to our loyal players. We’re taking measures to align the needs of our business to continue supporting TERA and preparing for our future. We are working with those affected by this transition, including offering assistance on new prospects within the industry/area. If there are companies who are looking for talented people with publishing experience, please send an email with the details to info@enmasse.com.

UPDATES:

The following people have been laid off from EME (With the exception of Brian Knoxx, who, to the fans' dismay... is still around.

BatGirl, another EME employee, has also been laid off, via her twitter page:

"@Batgirl - For those asking, yes I've been laid off by En Masse."

-BatGirl Community Moderator

Baranthe- Former Senior Operations Engineer, posted on the forums and was also laid off:

"It was a fun ride at En Masse, companies have to do what is needed to continue on.
I'm proud to be back in fan-mode and look forward to QoA2 and beyond."
-Baranthe your (ex)Senior Operations Engineer.

As was Gregor the Network Operations Manager :

"Bye guys, it was a blast! I am no longer a blue and now simply a fan. EnMasse is a fantastic company and the industry as a whole could learn some things from them.
This is a tough market but the product, company and team are all spectacular.
This isn't a day for mourning, it's a day for celebrating that EnMasse is still here and still loving their fans."
-Gregor(ex)Network Operations Manager

Community Question:

While it's true that TERA is struggling in all of it's continent releases including the US...

What do you think was the underlying cause of the Lay-Offs of EME's Workers?

Will TERA go free to play despite only releasing 3 months ago?