"Manhattan-based Kaos Studios -- developers of Frontlines: Fuel of War and
Homefront -- has been closed. THQ confirmed the closure to Joystiq this afternoon, noting that the company's UK-based studio, THQ Digital Warrington, has also been closed. The Warrington
studio previously worked on Red Faction Battlegrounds and Warhammer 40K: Kill Team. A statement from THQ additionally explains that employees at each studio have been alerted.
Beyond a cursory note about "strategic realignment within its internal studio structure," no other specifics are given as to the why the studios were closed, but its not as though the closure of Kaos Studios was unexpected. In the meantime, Homefront development has been transferred to the company's Montreal studio. THQ states that the laid off employees will be given a chance to interview at other internal studios, such as Montreal and Toronto. The full statement is available beyond the break.
Update: Due to UK law requiring employers to give a 60 day warning before layoffs, THQ says that THQ Warrington employees' warning "starts today ... and it is longer than 30 days." Given that, it's "not an immediate closure," but "a notification process leading to closure" for the UK-based studio."