Rumor: Layoffs at THQ's Rainbow Studios and Sandblast Games

Gamasutra sources indicate that publisher THQ has laid off staff at two of its internal studios: Sandblast Games , currently creating Destroy All Humans! Path of the Furon, and Rainbow Studios, currently working on the Wii-exclusive Deadly Creatures (potentially related sidenote: early last month several Rainbow Studios vets left to form their very own TimeFly Studios). Both developers will apparently continue work on their existing projects.

THQ has been making changes of late, killing several key franchises like Juiced and Stuntman, nabbing some new execs, and evidently those changes extend to their studios as well. With over a dozen development houses under its belt, if this rumor is true, it may not be the last round of layoffs out of THQ.