THQ have confirmed to Gamasutra that just over 30 people have been let go at their studios Volition (Red Faction: Armageddon, Saints Row: The Third, Insane) and Kaos Studios (Homefront).
"We have had to let go of 16 employees at Volition, our studio in Champaign, Illinois. We must adjust our workforce to fit the studio's current needs, which is a relatively common occurrence in the game development industry."
THQ also assures Gamasutra that these changes won't affect the three big projects currently in development at Volition.
When it comes to Kaos Studios, the cutbacks sounds like the typical downsizing of a team after completing a major project.
"Kaos has a dedicated team in place that will continue to support Homefront with an ongoing, robust DLC and content plan, as well as working on pre-production for future games."