So according to this
http://www.gamasutra.com/view/news/211139/Irrational_Games_journalism_and_airing_dirty_laundry.php
Levine's statement that they're just downsizing was almost all positive spin. The real story seems to be the usual situation, something that Jim Sterling has been very vocal about: another AAA company that let it's studio go too over budget and when it didn't make Call of Duty-level money they could only consider it a failure.
I guess this is what we call, The New Normal.