Just read this over at IGN. Such unfortunate news but if you look at the market, it's extremely common. The upside to this story is that people and companies are coming forth and offering the employees that were laid off positions at other gaming companies so it's not completely bad news but it still sucks. The BioShock series was one of my favorite games ever and it's unfortunate that this may be the end for the series. To all those affected by this news, I am sorry and I do wish you the best of luck.
If anyone is curious about what the future may hold for irrational games, this may be peek your interest: http://www.ign.com/videos/2014/02/18/whats-the-future-of-irrational-games