If a comment on a CyanogenMod commit thread by founder Steve Kondik is any indicator, rumors that Cyanogen Inc. is basically getting out of the OS development business seem to be coming to fruition. While the context of the comment is a rather specific commit thread, Kondik's frustration seems to have led to him to say a bit more about Cyanogen Inc.'s future plans than the company may have liked:

There isn't really going to be much if any involvement from the Inc this time around and I'm taking on a lot of stuff on my own to try and keep us moving forward.

This would appear to be at odds in some ways with the assurances Kondik gave to CyanogenMod community members about the for-profit Cyanogen Inc's involvement back in July.

Cyanogen Inc (including myself) will still be sponsoring the project [CyanogenMod] and will continue to have an active role in it’s [sic] development.

I'm not sure how "an active role" in CyanogenMod's development and "much if any involvement" in that development gel. I mean, it's because they don't. At all. The conclusion we're left to draw, then, is that Cyanogen Inc's role in the open source CyanogenMod product probably will be near nonexistent, at least if Kondik's off-hand remark is to be believed.

We've also heard continued reports from a number of sources that Cyanogen Inc. is struggling to retain talent, having let go much of the workforce responsible for OS bringup and framework. The company's Palo Alto office, once home to around 20 employees, has just a handful remaining. And after the big layoff round, some simply chose to leave the company instead of stay put, likely expecting that nothing good was on the horizon anyway.

What this all means for CyanogenMod is still unclear. Will the lack of support from Cyanogen Inc. and increasingly tense relations in the community mean the ROM's slow and eventual demise? That'd be unfortunate - there's no doubt CyanogenMod is a pillar of the Android enthusiast community, and even I wouldn't want to see it go. As for Cyanogen Inc.? Well, I'd guess passing on that alleged Google buyout offer is a significant source of regret these days.

Source: CyanogenMod