Looks like it's not quite as bad as first thought:
Under the new arrangement, Earthlight, the science fiction and fantasy list started up five years ago, will cease to exist as an imprint from the end of this year. Its authors will be published on the Simon & Schuster and Pocket lists where they will be given the same profile and commitment as before, but will enjoy the benefits of belonging to the main body of the fiction list. As a consequence of this, Darren Nash, Senior Editor, will be leaving the company at the end of September.

Comments from the guy who founded the list here:
And the authors…this is purely a personal feeling, but I always worry about SF and Fantasy authors when there isn’t a guiding hand for the genre in any company. It is a different form of publishing, and to lump the genre in with everything else is, in my opinion, making the same mistake as publishers accuse accountants of making - we don’t sell baked beans, our products are each different. This is doubly true of SF and Fantasy.