This has been rumored for months and now confirmed with a recent Interview. Photorumors has the complete details of the interview with a Canon Exec.  The auto translation from Japanese to English is rough but a fluent reader on DPreview has summarized nicely. Highlights of the interview:

• The decline in DSLR sales is coming mainly from the entry level, as the evolution in that segment has slowed. He admits that they have not been able to introduce new entry class products that would spur people to change models (the original statement can be seen as an indictment of either Canon, or the entire DSLR industry). However, he does note that developing countries like Brazil and India are still seeing double digit growths.
• He speculates that maybe part of the mirrorless needs can be met by high end compact cameras, as the latter type gets more and more zoom range. Canon is trying both options.
• On the other hand, he also speculates that mirrorless may replace the Rebel line in the future. (I wrote about this with the T6i Rumors I don't think the T6i will be mirrorless)
• Annual updates of entry class models are no longer likely. (Canon never did annual updates of mid- and high-end models anyway.)
• He sees electronic shutter as the future, saying "global shutter makes more sense."
• Canon will apparently stick with "glass" based IS for the time being, and believes it still has room for improvement. (Curiously, the other alternative the interviewer suggested was electronic IS, and neither side seems to talk about IBIS.)
• Durability against e.g. shock and drop, in addition to "uncompromising optics," is a focus point in developing new EF lenses these days.
• Full size mirrorless? "Uh, I can't answer that now."
• Medium format? "The 35mm format has so much potential left. Although I don't deny the merits of a larger sensor, there are many other things we need to be doing right now."