I've put two links below to informative articles for authors, both published and those seeking publication. The comments others have made about the articles listed also make interesting reading.
It is very tough for many businesses and individuals at the moment and extremely tough for most authors with the exception of the BIG sellers. It's not just because of the recession though, and although the economic climate is responsible for cut backs in the publishing world the book industry is continuing to change at a very fast rate and will continue to do so with the advent of new technology and readers habits.
Authors taking pay cuts of up to 50%: "Authors have seen their advances drop over..."
Publishers cancelling books to cut costs: "Authors are being told their books are not..."