I'm very upset to learn this, as the People's Palace was a real highlight of Glasgow for me. In particular, it added a lot to my Tenement Museum visit, to see the contrast between the poorer living situations many had (one or two rooms for a whole family), and the relative "luxury" in the Tenement Museum (four rooms for first two people, then just one person; ensuite toilet and bathtub; hot and cold running water).
There were repairs going on in the Winter Garden when I was there, so I only peek in, not go inside.
Yes, the article says "We are currently working on options to allow the People’s Palace to remain open independently of the gardens." Let's hope they find a way!