
P2 Entertainment - formerly Perpetual Entertainment - has ceased development on Star Trek Online, according to multiple sources at the San Francisco based developer. The news does not, however, mean that the game is canceled. The license, as well as the game's content - but not the code - have been transferred to another Bay Area development studio where work will continue. It is not entirely clear at this time what this means for the individual developers who worked on the project at P2.
As a company, P2 Entertainment will continue on with their profitable Perpetual Platform, which has been licensed to industry leaders like BioWare, and refocus their core business on the casual games market.

The MMO studio says it’s “unifying legacy expertise with fresh perspectives”
The long-running, free-to-play Star Trek Online has expanded once more - and this time it's the new Both Worlds season that comes to Xbox and PlayStation.

Cryptic Studios appears to be the latest Embracer-owned company to be impacted by layoffs.
Just guessing, but it could be that the contract with the PR company is void if P2 won't create the game, thus it'd be better to let other developers do it instead.