Is Sigil a developmentally dead? I've read that the developers were all let go. TIA.

I'm asking about this because I've read on multiple outside sources that the entire Development Team was fired, and that Hasbro has killed the project. Is there any truth to this?

There is no real information about what the future might hold, but the situation looks grim.  We know that they laid off about 90% of the development staff, leaving a few folks to continue working on it.  Some reporting says those remaining were still very much in active development and had some optimism about the future.  Since that time, Chris Cao, the Wizards VP spearheading Sigil, also “retired” (unclear of the details, but Sigil imploding at the same time and longstanding reports of him having friction with other Wizards staff do not overly point to a willful retirement).

At this time, I expect there are three likely long-term paths. 1. They kill it outright, not falling for a sunk cost fallacy and not wanting to spend any more resources maintaining it or its servers.  2.  They assign it to someone new, someone who might have a better understanding of VTTs and D&D players’ needs than Cao ever did. 3. They let it linger for some time, like they did with 4e’s digital tools.  This might mean making it slightly more playable in the near term, then putting it on the back burner, or leaving it in its current state forever.

My gut feeling says we will see it linger in its current state for quite some time, as Wizards tries to evaluate if there is an audience to justify any of the above paths. 

This makes perfect sense. I've been "testing" it for several months for viability with my online game. Its current state is entirely incomplete in my mind (not that my opinion means much). The lack of any real development tells me that it is likely to linger in limbo for quite some time, and then probably killed outright. 

I'm in agreement with Caerwyn_Glyndwr. 

It took a long time to develop and release, with a full dev team (30 devs), and what was released was difficult to use, limited in what could actually run it, and full of bugs. It's barely usable for what it's supposed to do. Then they fired most of the staff down to just 3 devs. This is simply not enough - there's far too much to do. Also note that they are still having to compete with other 3D VTTs already out there that are superior in every way already. Unless they go hire a new large dev team soon - they've not got a hope in hell of continuing this project to anything profitable. 

It was posted here on the forum that the intention was to basically cannibalise what they can for use in other projects, but otherwise, not much. Project Sigil itself is dead...but it might not be a compete write-off.

That seems a reasonable conclusion given what else we know.

Quote from Caerwyn_Glyndwr >>

 2.  They assign it to someone new, someone who might have a better understanding of VTTs and D&D players’ needs than Cao ever did. 

Personally feels like the funding and time spent developing sigil were misused by the previous team overall, so I hope for option 2

I really like it. The builder is excellent and with the cheap subscription you get a tonne of tiles and minis.  You can import your characters and connect to other players.  You have to manually do a lot, but as a face to face game aid it is really useful.  I built the maps for my short adventure in a few hours.  

Can it be dead if it was never alive?

My suggestion would be to allow players to produce machinima videos, and these would be released in youtube. Other option would be to create interactive modules style "Endless Quest" gamebooks for solo-players. And a "free mode" to playtest homemade rules, for example new classes or monsters. 

Could the software to be recycled for a spin-off? For example a city-building, shop-keeper or farm simulation.