THQ has confirmed that Homefront developer Kaos Studios will be closed down, as well as THQ Digital Warrington.
The studios are part of a "strategic realignment" which aligns neatly with the gearing up of THQ's new Montreal office.
"THQ continues its strategy of aligning the best industry talent with the company's marquee franchises," THQ said in a statement issued to Gamasutra.
"The Montreal studio will take over product development and overall creative management for the Homefront franchise. The Montreal studio actively collaborated with Kaos on Homefront."
Employees from the closed studios have been invited to interview for jobs at the company's offices in Montreal, Vancouver and Austin.
Kaos Studios employ 70 staffers, whilst the smaller THQ Digital Warrington was the publisher's only presence in the UK.
Reports originating on Twitter have indicated that Homefront developer Kaos Studios is closing down, with development of any further content for the game, or indeed any sequel, being transferred to THQ Montreal.
The first mention of a possible closure was attributed to an ex-Kaos team member, Zach Wilson, who claimed that several of his ex-colleagues had already secured new positions. News reports of the potential closure soon followed.
Last week at E3, THQ's core games boss, Danny Bilsson confirmed that future Homefront development would be occurring at Montreal, telling sister site Eurogamer that:
"We said all along that Montreal will be an important home for that franchise in the future. The best talent from the game will always be invited and involved. I love that team. I worked really hard with that team and supported them. We'll still support the talent that built that game."
GamesIndustry.biz has contacted THQ for comment on the issue.