Apparently, this is what happened last night. At 7PM ET, all Deep South talent reported to the building and were addressed by Mike Bucci (Simon Dean) and John Laurinaitis.
The talent was informed that the WWE office was not pleased with the DSW product, and that DSW was hereby closed for good. DSW talent had to assist with the removal of all WWE property from the building. Jody Hamilton allegedly had a verbal exchange with Laurinaitis, and the DSW talent were then told not to step foot in the building again, or they would be immediately fired.

It appears talent will be relocated to Ohio Valley Wrestling or Tampa, FL, the home of the new Florida Championship Wrestling. Right now, nobody has any clue where they are headed or when they are headed there.

Afterwards, Laurinaitis and Bucci supposedly took the talent out to Hooters for drinks.

Former DSW talent Kenny Omega commented on WWE's decision to sever ties with Deep South, "The rumours had always been there. For over two years there was suspicion of DSW shutting down. The system certainly had its flaws but the wrestlers were the ones least at fault. It would be an injustice for those who've endured years of physical/mental punishment to have it stripped away. The athletes there were hard workers and among the toughest I've seen in wrestling."