Warhammer 40,000: Dark Millenium Online No Longer an MMO, Lay-offs at Vigil and Relic

Reuters is reporting a press release sent by THQ in which the company announces that they'll shift the development of Warhammer 40,000: Dark Millenium Online from the MMO model to "an immersive single player and online multiplayer experience with robust digital content, and engaging community features."  As a result of that shift, a sizable part of the Vigil and Relic teams (79 and 39 employees respectively) have been laid off:
(As previously announced, we have been actively looking for a business partner for the game as an MMO. However, based on changing market dynamics and the additional investment required to complete the game as an MMO, we believe the right direction for us is to shift the title from an MMO to a premium experience with single and multiplayer gameplay, robust digital content and community features,) said Brian Farrell, President and CEO of THQ Inc. (Because we believe strongly in the high-quality and vast creative work that is in production, this is the right decision for both our portfolio and for gamers devoted to this powerful property.)

(We are genuinely excited about the new direction that THQ is taking with Warhammer 40,000: Dark Millennium, and we are sure that this will be a great addition to the ever growing stable of authentic and engaging Warhammer 40,000 video games,) said Jon Gillard, Head of Licensing for Games Workshop.

As a result of this change, team sizes at two THQ internal studios will be reduced by 79 full-time employees at Vigil Games in Austin, Texas, and 39 employees at Relic Entertainment in Vancouver, B.C.
Shifting away from the MMO model looks like a desperate move, and is probably the result of THQ being unable to secure assistance from another company for the development of the title.