Yes, it was an “unannounced” survival game they have actually talked about quite a bit over the years. The hiring for it was listed as “unannounced survival game”.
Years went by though and no gameplay footage came out, no alpha, no…nothing. So I think many people were wondering if it would still happen, but Blizzard is known for long dev cycles. In this case, whatever the status was they decided that it would be cancelled. That whole team got laid off.
Not the first game that has been cancelled at Blizzard, but I feel terrible for all those losing jobs in this huge round of layoffs, not just at ATVI/MS, but across industry.