According to this Gamasutra report, THQ has laid off staff at two of its wholly-owned developers, Phoenix, Arizona-based Rainbow Studios and Kirkland, Washington-based Sandblast Games.
The Rainbow staffers were let go in mid-April, with the bad news hitting Sandblast this week, apparently.
From the piece:
The Rainbow layoffs occurred in mid-April, comprising about 30 team members from an unannounced game. According to sources, the production on the project will continue with the reduced staff – and the staff were a minority of the developer’s multi-team setup.
Similarly, an unspecified number of layoffs at Sandblast were conducted this week – though it appears that the company will continue work on its current project, Destroy All Humans! Path of the Furon for Xbox 360 and PlayStation 3.
SurferGirl posted this morning that the majority of the redundancies are to come from Sandblast, which is likely to close. Rainbow will continue to operate on a skeleton crew.