They are not dead at all. They are down-sizing. Rumor is likely their Montreal studio may be closed. But that leaves them Norway, the US etc.
According to the announcement, Funcom will come out of the restructuring "better equipped to realize the strategy of building high-quality MMO games,"
So, Funcom is still very much in business at the moment.
Let's hope the restructuring keeps them going strong, as it has for other game developers/publishers this last year.