Tokyopop has announced they will no longer be just one company and are separating out their print and video divisions.  Much like Viz Media, Tokyopop Inc. will continue publishing the manga we love so much while Tokyopop Media LLC. will be in charge of all video aspects including comic-to-film movies.  As a part of this division of labor, Tokyopop has laid off 39 people.

Manga readers will be more worried about the news that Tokyopop Inc., due to market challenges, will be scaling back their publishing activities from 470 volumes a year to around 235-240 a year, just half of its previous output. Unfortunately they have not released which mangas will be affected by this as of yet.

  In a brief update a few days after this news first broke, Tokyopop sent its contracted graphic novel creators a letter stating the creators should still be working on the same schedule that they had prior to the structure change and that the only change so far is that they will be sending their works to new editors, who will be speaking to them about their projects soon.  (A copy of the letter can be found here.)
 
Reactions from the creators have been mixed.  Creator Rikki Simons said, "This is the first time Tokyopop has rushed a schedule to us a full month before we turned in our current project. I suppose this means that this restructuring has been in the works for some time, and that if they were planning to cut our book, they wouldn’t have sent a schedule at all. So we’ll just do as the new schedule says, unless we’re told to stop."

Source: Anime News Network