THQ has made 14 people in its Australian office redundant and is in the process of closing its Japanese office, Kotaku reports.
The site received the information from an anonymous source, which also confirmed that THQ's five internal studios are unaffected. The number of redundancies at the Japanese office has not been confirmed.
The rumour offers some clarity to THQ's official announcement last week that it was implementing, "a reduction in force to the company's administration and publishing organisation."
THQ has now halted production on all games made for children and young audiences, and will now concentrate on its core games business.
The company reports its financial results for the last quarter on February 2, with predicted sales of between $510 million and $550 million.
THQ's board will be under particular scrutiny following the publication of a letter from a former member of staff calling for the heads of the executives that have presided over the company's decline.
"We've watched the stock from the outside and read the comments, and the reason why the company is valued so low despite its sales is because of this under-qualified management team," the letter concluded.
"Board, it is time for you to act before your names are added to the list above of things that must change."
To read Matt Martin's editorial on THQ's deteriorating performance in recent years, click here.