While THQ is spinning it as “a strategic realignment within its internal studio structure,” the truth of the matter is that lead Homefront developer, Kaos studios in New York, will be closed. Sources confirm to us that the employees have been officially informed.

THQ’s Montreal studio will take over all product development and overall creative management going forward for the Homefront franchise. THQ’s Montreal studio worked with Kaos on the Homefront title. The news isn’t really a surprise, as rumors of Kaos closing have worried employees of the studio for some time. A number of developers from Kaos expressed the belief that Homefront would be going to Kaos Montreal once it was released.

In addition to the closure of Kaos, we can also confirm that THQ Digital Warrington in the U.K. has also been informed that they will be closed, as well. While THQ says that employees of both studios will have the chance to interview for open positions within the company globally, whispers suggest that a number of employees are bitter on how the company handled this situation.

While some of the Kaos employees are expected to take jobs at the THQ Montreal studio and continue working on the Homefront franchise, rumors suggest that many employees are simply unwilling to make the move from New York to Montreal. Talk of Kaos being closed has been going on for the better part of a year now, with speculation at the last GDC that the Kaos would not survive the summer.