THQ announced today that it has shut down Kaos in New York, and started the process of shutting down the UK's THQ Digital Warrington. Employees at both studios have already been informed, and the company says it is currently hiring at other internal studios in Vancouver, Canada, and Austin, Texas. No reason was given for the closure, other than mention of a "strategic realignment."
As was the case when Activision looked to close operations at Bizarre Creations, UK law requires a warning period for closures. Digital Warrington won't be shuttered for at least 30 days, giving employees some time to find new positions before the studio is closed.
Kaos is known most recently for Homefront, which was met with middling reviews but decent sales. THQ Warrington just released Red Faction: Battlegrounds, a downloadable tie-in game for Red Faction: Armageddon.
As part of the announcement, THQ mentioned that THQ Montreal will take over creative management for the Homefront franchise, implying that a sequel may be in the works.